jtp64
Returning Member

Unemployment compensation seems to trigger kiddie tax on my daughter

My daughter graduated from college last year and was supposed to begin work at a company after graduation, pre COVID.  Her contract was canceled due to COVID and received unemployment compensation. Since was  living with us part of the year and a student for 5 months she would still be seen as a dependent. So, when I do her taxes it is triggering a kiddie tax, which seems odd for unemployment compensation.  Is that correct, she would need to pay kiddie tax on it?