I just realized that i rushed in asking my last question/clarification. Obviously, I need to report any kiddie income above $1,250. The portion of the income less than $2500 will be taxed at 10% (the kids rate). The remaing income above $2500 will be taxed my marginal tax rate. In case, the kiddie income exceeds $11000, the kid has to file its own tax return. Correct?
