Question

For 2010, the amount of exemption that a child can enjoy on any interest, dividends or capital gains income is limited to:

a. $950.
b. $1900.
c. $10,000.
d. There is no exemption for this type of income.

Answer 1

In 2010, the exemption for a child's interest, dividends, or capital gains income was $950, which is important for determining a child's tax obligations.

Step-by-step explanation:

For 2010, the amount of exemption that a child can enjoy on any interest, dividends or capital gains income is limited to $950. This exemption is important when calculating a child's tax obligations and reflects the broader understanding of personal income taxation principles, including the adjusted gross income, standard deductions, and exemptions mentioned earlier.