@ewilson4 wrote:
That is amazing news. I have three kids whose summer jobs were impacted and as a result that collected unemployment which the IRS was treating as unearned income and taxing at my rate. I held off filing for them for this reason. I am guessing that there are a lot of very happy parents out there as a result of this.
I actually haven't seen a lot of news on this at all. The fact that kids unemployment was being taxed at 24% or more (instead of being tax free under $12,400) could have been spun up as a big controversy if one of the news organizations wanted to make a stink about it and blame Congress, but I haven't seen anything on it, nor have I seen any articles telling parents to amend their kids' returns now. (On the other hand, the fact that kids whose hours got cut at McDonalds get enhanced UEC may be something that prominent politicians don't want to call attention to, like prisoners with no taxable income being eligible for full stimulus rebates.). Or maybe I read the wrong things.
Best of luck to you.
