Should my dependent daughter (full-time college student), who received unemployment (summer), be taxed at my (parents) tax rate?

celizabethd · ‎February 14, 2021

With her unemployment (1099-G) plus other employment income she made over the minimum-to-file amount. Now huge tax bill (went from not having to file at all to owing thousands).

Bsch4477 · ‎February 14, 2021

Unfortunately unemployment payments are unearned income and subject to the Kiddie Tax if the child has a filing requirement.

DanaB27 · ‎February 14, 2021

Yes, unemployment is unearned income and if a child had unearned income of more than $2,200 then the the Kiddie Tax is triggered. The Kiddie tax uses the parents tax rate.

Please see IRS Topic No. 553 Tax on a Child's Investment and Other Unearned Income (Kiddie Tax) for additional information.

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Should my dependent daughter (full-time college student), who received unemployment (summer), be taxed at my (parents) tax rate?

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