For the “kiddie tax” rule to apply, the child must:
Be required to file a tax return for 2022.
Not be a full-time student and not have attained age 23 in the tax year.
Have both parents living.
Not have claimed the American Opportunity Credit the previous year.
Schedules K-1
Which of the following situations does NOT describe a material participant?
Mika participated in Activity A for 20 hours, Activity B for 80 hours, and Activity C for 75 hours. Another person contributed more hours in the same activity.
Bree participated in Activity X for 612 hours.
Justin was a full-time owner/employee at Activity Q from 2012 to 2022.
Brent participated in Activity Y for 210 hours, more than any other individual.
Portfolio income includes:
Commissions for a stockbroker.
Guaranteed payments for service rendered by a partner to the partnership.
Royalties not derived in the ordinary course of a trade or business.
Quarterly bonus payments.