@writermom3 wrote:
Here's a tag-on question: my college-age son (still dependent on our taxes) collected unemployment insurance in 2020 but the IRS is taxing him at our rate b/c he made too much money. So my question is: with this new law, will his first $10k of unemployment be free from federal tax?
That is one of the questions that the IRS will need to address with regulations. The 8915 instructions just say more than $2,100 of unearned income. It does not say that the unearned income must be taxable. And unemployment is unearned income.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
