What does kiddie tax mean on the CPA exam?

Kiddie tax. Taxing a child's unearned income above a threshold at the parents' rate, so that income cannot be shifted to a lower bracket by gift.

Kiddie tax. Taxing a child's unearned income above a threshold at the parents' rate, so that income cannot be shifted to a lower bracket by gift.

Defined against Sec. 1(g).

Which CPA exam sections use kiddie tax?

Kiddie tax appears in the TCP section of the CPA exam.

earned income: Compensation for personal services -- wages, or net earnings from self-employment.
self-employment tax: Social Security and Medicare tax paid by someone working for themselves, covering both the employee and employer halves.
regular tax: Tax computed under the ordinary rules, before the alternative minimum tax is considered.
tentative minimum tax: The alternative minimum tax computed on its own, before comparing it to the regular tax.
single audit: The combined financial statement and federal compliance audit required of an entity spending above a threshold in federal awards.