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Yusef,age 15,is a Dependent of His Parents

Question 98

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Yusef,age 15,is a dependent of his parents.In 2019 he earned $5,000 from a part-time job and $8,000 of interest income on bonds given him by his grandparents,resulting in taxable income of $7,650.Under kiddie tax rules,calculation of tax requires dividing taxable income between net unearned income and earned taxable income.Yusef's taxable income will be divided as follows


A) net unearned income -$5,800 and earned taxable income -$1,850.
B) net unearned income -$7,650 and earned taxable income -$0.
C) net unearned income -$0 and earned taxable income -$7,650.
D) net unearned income -$1,850 and earned taxable income -$5,800.

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