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If you qualify for IRS Form 8615, yes, you need to answer the questions about your parents income. Unemployment is considered unearned income for purposes of the form and unearned income over $2,200 triggers the form. Review your answers to see whether this form is required.
IRS Form 8615 is used for children under age 18 and certain older children for whom unearned income over $2,200 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,200, use IRS Form 8615 to figure the child's tax.
Review your answers to see whether this form is required.
When filing the form, you must provide the name and Social Security Number of a parent, as well as which filing status the parent is using, such as single, joint or married filing separately. The form has three parts:
- Part I identifies the child's net unearned income and how much of it is subject to the kiddie tax
- Part II calculates the kiddie tax based on the parent's tax rate
- Part III calculates the child's tax that is used on the child's Form 1040
This TurboTax Help explains who must file IRS form 8615: Tax for Certain Children Who Have Unearned Income.
For 2020, a child must file Form 8615 if all of the following conditions apply:
- The child has more than $2,200 in unearned income
- The child is required to file a tax return
- The child does not file a joint tax return with a spouse
- At least one of the child's parents is alive
- The child is within certain age limits
For tax purposes, the child's "age" is the age on December 31. The child must file the form if any of these conditions apply:
- The child is under 18 at the end of the year
- The child is 18 years old and does not have earned income that is more than half of the child's support for the year, or
- The child was a full-time student age 19-23 and does not have earned income that is more than half of the child's support
In addition, the IRS defines unearned income as:
- Interest, dividend, or investment income,
- Retirement or Social Security income,
- Alimony or child support,
- Unemployment or worker's compensation,
- Gifts, prizes, awards, or winnings,
- Inheritances,
- Income received while incarcerated, even if it involves active work.
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