Q. My bill on approx. 6K taxable income is $1229. Is this right?
A. Yes. The $6K unemployment is "unearned income" and, as such, subject to the "Kiddie tax" (being taxed at the parent's marginal rate).
The kiddie tax was implemented to discourage parents from shifting investment money to kids' to avoid high tax rates. But, the law was written for "unearned" income, not just investment income. Whether it's fair that unemployment compensation should be included, is a different question, but it is correct that it is taxed that way.
