Yes, your daughter's unemployment compensation might be included in household income.
It depends on how it affects her Adjusted Modified Gross Income.
If your daughters income with the unemployment is less than the filing threshold, (meaning she does not need to fie a return) it would not affect (not included in) household income.
No, your daughter's unemployment does not count as you or your spouse receiving unemployment.
The TurboTax program asks if you, or your spouse, received, or were approved to receive, unemployment since that would make your household income considered as no greater than 133% of the poverty level. This would not include the fact that your dependent received unemployment, however that unemployment (received by dependent) may be included in Household Income.
According to the IRS:
"If a taxpayer, or the spouse of the taxpayer (if filing a joint return), received, or is approved to receive, unemployment compensation for any week beginning during 2021, the amount of the taxpayer's household income is considered to be no greater than 133% of the federal poverty line for the taxpayer's family size."
"For purposes of the PTC, household income is the modified adjusted gross income (modified AGI) of you and your spouse (if filing a joint return) (see Line 2a, later) plus the modified AGI of each individual whom you claim as a dependent and who is required to file an income tax return because his or her income meets the income tax return filing threshold (see Line 2b, later). Household income does not include the modified AGI of those individuals whom you claim as dependents and who are filing a 2021 return only to claim a refund of withheld income tax or estimated tax."
For purposes of the PTC, modified AGI is the AGI on your tax return plus certain income that is not subject to tax (foreign earned income, tax-exempt interest, and the portion of social security benefits that is not taxable). Use Worksheet 1-1 and Worksheet 1-2 to determine your modified AGI."
IRS LINK
@danjoesam
[Edited 02/18/22 I 12:05pm PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
