Which itemized deductions of a child can reduce the amount of investment income subject to the kiddie tax?
a. Incorrect. While a child subject to the kiddie tax can claim charitable contributions, they do not offset investment income subject to the kiddie tax.
b. Incorrect. While unreimbursed employee business expenses are part of miscellaneous itemized deductions, they do not offset investment income subject to the kiddie tax.
c. Correct. Expenses directly connected to investment income (in excess of the 2%-of-AGI floor) can offset investment income.
d. Incorrect. While a child can claim an itemized deduction for medical expenses, such expenses do not offset investment income for purposes of the kiddie tax.