A 17 year old child has 1000 of adjusted gross unearned inco

A 17 year old child has $1,000 of adjusted gross unearned income for 2017 and no earned income. The marginal tax rate of the child\'s parents is 28%. What is the child\'s tax liability A) $0 B) $85 C) $238 D) $950

Solution

Answer: A. $0

A 17 year old child has $1,000 of adjusted gross unearned income for 2017 and no earned income. The marginal tax rate of the child\'s parents is 28%. Because in 2017 the child tax credit is up to $1,000 per child.