I get 2 disability payments from a Teachers' pension. 1 is payable to my dependent. The 1099-R has her SSN. Should I declare this income on my taxes or hers?

[burt_lampl]

This question is for 2020 income tax filing. If relevant, she turned 18 in Oct 2020.

[ColeenD3 · Accepted solution]

You do not claim her income on your return. She would need her own return. A dependent's filing requirement for unearned income is $1,100. She will also need to file a Form 8615.

Form 8615 must be filed for any child who meets all of the following conditions.

1. The child had more than $2,200 of unearned income.
2. The child is required to file a tax return.
3. The child either:

1. Was under age 18 at the end of 2020,
2. Was age 18 at the end of 2020 and didn’t have earned income that was more than half of the child's support, or
3. Was a full-time student at least age 19 and under age 24 at the end of 2020 and didn’t have earned income that was more than half of the child's support.
   (Earned income is defined later. Support is defined below.)

1. At least one of the child's parents was alive at the end of 2020.
2. The child doesn’t file a joint return for 2020.

[burt_lampl]

This makes sense, thank you. If I do not claim my daughter's income on my return, can I still claim her as a dependent? She turned 18 in October of 2020 and she is currently a senior in high school, living with me at home. Her unearned income was about $9,000 and she earned $1,200 from a summer internship/job. Much appreciated!

[CatinaT1]

Yes, you still claim her as a dependent.  When she files her return, you want to be sure she marks that she is being claimed as a dependent on another return.