LindaS5247
Employee Tax Expert

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Yes, a taxable grant reported on a 1099-G for a child is generally considered to be unearned income.  If his total unearned income is more than $2,700 he will be required to file a tax return and attach a Form 8615 (Kiddie Tax) to calculate the tax at your higher tax rate. 
 

What's the Kiddie Tax?

What is IRS Form 8615: Tax for Certain Children Who Have Unearned Income

 

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