Yes----you are getting hit by the kiddie tax. But wait to file her return because the law just changed for how much of the unemployment is taxable.
https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...
You are among millions who have now been affected by a mid-tax season change in the tax law. Patience will be necessary.
TurboTax will update the software for the unemployment but there is no timeline yet.
If you have not e-filed yet—-wait. And if you already e-filed and want to amend for this—WAIT.
https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...
Please read this very recent news from the IRS:
https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021
KIDDIE TAX
https://ttlc.intuit.com/questions/1900671-what-is-the-kiddie-tax
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
