Dependent unemployment

[CharGreg3828]

Hi,

My daughter collected unemployment due to COVID.  She is a dependent on my taxes.  She had taxes taken out all along, but now owes $1,400 more in tax.  How can this be reduced?  Her friend got more unemployment and owes half the taxes.

[SweetieJean]

Not too many dependents collect unemployment.  How old is your daughter, and was also a full student in 2020?  Is her friend also a dependent?  Or maybe her friend had more withholding taken.

[CharGreg3828]

Hi,

She is 18 and a full time student.  Her friend is also a dependent and a student.  She also received more unemployment money than my daughter and had less deducted from it and owes less than my daughter.  I saw some story that said they will get taxed at your parents rate, but can't find any info on if this is true or how it works.