For the “kiddie tax” rule to apply, the child must:
Be required to file a tax return for 2022.
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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.
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.