Provision for income tax refers to the line item in the profit and loss statement. Income tax is a broad term and could mean current taxes (taxes actually payable to Government), Tax expenses/provision for tax- taxes reported in the P&L or deferred taxes (difference between current taxes and tax expense).

Estimation of the taxes for the current year

You will need two accounts:

Income tax expenses (an expense account, obviously)

Provision for income tax (a liability account)

You will simply:

debit provision for income tax

credit income tax expenses

When actually paying income tax, you will:

debit cash

credit provision for income tax

In the US, there is no special tax provision for toddlers. If the toddler is your dependent, you can include him/her as such.

All interest income for the year is added to all of your other gross worldwide income for the year and reported on your 1040 income tax return for the year.