topic My dependent has a 1099G form from unemployment. Is she required to file? in Get your taxes done using TurboTax

My dependent has a 1099G form from unemployment. Is she required to file?

TK39 — Wed, 24 Feb 2021 18:49:45 GMT

Re: My dependent has a 1099G form from unemployment. Is she required to file?

ColeenD3 — Wed, 24 Feb 2021 19:03:51 GMT

Yes. A dependent's filing requirement for 2020 is $1,100 (unearned income). she also may be required to file Form 8615.

The rules change when your child receives income from sources other than employment, such as interest and dividend payments. When the 2020 total of this type of income exceeds $1,100, then a return must be filed for your child.

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

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

Was under age 18 at the end of 2020,
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
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.)

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

Re: My dependent has a 1099G form from unemployment. Is she required to file?

TK39 — Wed, 24 Feb 2021 19:06:08 GMT

My dependent's unemployment money ($14,000) are being taxed at my rate (form 8615, child's unearned income) and she has to pay back over $3000. Is this right? They already taxed her unemployment money (10%).

Re: My dependent has a 1099G form from unemployment. Is she required to file?

ColeenD3 — Wed, 24 Feb 2021 19:21:50 GMT

Yes. They original theory behind this form was to tax a portion of unearned income at the parent's rate to prevent adults hiding investment income in their children's names to get a tax break. Unfortunately, all unearned income is treated the same way.