Question

Which of the following children would generally be subject to the “kiddie tax”?
Ava, age 12, earned $700 in dividends, with no other income.
Carlos, age 15, worked as a lifeguard all summer and earned $2,500 with no other income.
Daniel, age 14, earned $1,100 in interest and had a $2,000 royalty from a family oil well, with no other income.
Zoe, age 19, is taking a gap year before college and received $4,200 in dividends, with no other income.

Answer 1

Ava and Daniel.

Reason: The kiddie tax applies to a child’s unearned income (dividends, interest, royalties, etc.) for children under age 19 (or under 24 if a full‑time student). Ava (age 12) has dividends (unearned). Daniel (age 14) has interest and royalties (unearned). Carlos’s income is wages (earned income), so not subject. Zoe is 19 and not a full‑time student, so the kiddie tax does not apply.