Kiddie Tax and unemployment tax relief over 150K

[ramlong]

My AGI is above 150K but my dependent is around 13K with 9000 from unemployment.  Does my dependent receive the the benefit of the American Tax Rescue act or not, because I made over 150K and he is getting taxed under my rate because of the kiddie tax?

[macuser_22]

I am not sure what you are asking.  Unless he received unemployment himself and has his own 1099-G form, he would not enter yours.

I believe the 8915 interview asks for the parents AGI (1040 line 11).

[ramlong]

Here is the scenario

My income is 150K +

His income in 13K (3000 earned and 10000 unearned) which puts him into the kiddie tax category.

My question is does he get the 10200 unemployment tax break from the new Rescue pkg OR does he not because now he is taxed at my rate which is above the cutoff of 150K to qualify for previously mentioned tax break

[macuser_22]

None of his income is unemployment so the "rescue act" does not apply to him at all.  It applies to you.  He is taxed at your tax rate as your return is when it is filed after you apply the credit to your tax return.  I believe your income to too high to get any exclusion.

The $10,200 is NOT a credit, it simply excludes up to that amount of taxable unemployment payments form your taxable income as reported on a 1099-G form.

[ramlong]

over half($9000 of his $13,000)  of his(dependent)  income is from unemployment benefits.  That's why I am inquiring about the 10200 exclusion for him.  It only has to do with me because he is getting taxed at my rate because of the kiddie tax.   Basically, is his 9000 unemployment excluded from the kiddie tax and tax free(Rescue Act) knowing I made over the 150K threshold.

Not trying to make this confusing but I am not sure you understand what I asking.

Thanks

[AmeliesUncle]

Your income has absolutely no effect on whether HIS income is under $150,000.

As long as HIS income is under $150,000, he qualifies for the Unemployment Exclusion.

[macuser_22]

OK - You did  not say before that the child's unearned income was unemployment.     The amount of income used for the child tax return on the 8615 form is his 1040 line 9 amount minus earned income.   Line 9 is the total income plus line 8 (that should be a -9000 for the exclusion). 

So his unemployment should not be included in the calculation.