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Flashcards: Dependents
A 22-year-old full-time student earned $11,000 in salary and received $9,000 in interest from corporate bonds. The bonds were a gift from the student's grandparents. The student's parents pay more than half of the student's support, including $25,000 in tuition. Which of the following statements is correct regarding the student's current-year income tax?
A portion of the student's interest income and no other income will be subject to the "kiddie tax."
Neither the student's salary nor the interest income will be subject to the "kiddie tax."
The student's salary income and no other income will be subject to the "kiddie tax."
Both the student's salary and a portion of the interest income will be subject to the "kiddie tax."
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