Federal Form 8615?

Forum|Forum|5 years ago
February 23, 2021
2 replies
5 views

Is state unemployment income (UI) really "unearned income" that is subject to the kiddie tax on IRS form 8615? If so, our federal tax rate is 27%. Neither one of us have any other unearned income. I'm a single parent, claim head of household, daughter in fulltime college out of state, she files separately but does not claim herself.

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macuser_22

Alumni - Champ

Yes is is unearned income for the kiddie tax.

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:

a.Was under age 18 at the end of 2020

b.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

c.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.)

4.At least one of the child's parents was alive at the end of 2020.

5.The child doesn’t file a joint return for 2020

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

jlatannerAuthor

Level 2

Thank you, your response is correct and accurate, per IRS tax law. Many students who received unemployment checks and meet the above criteria will be surprised by a large tax debt, estimated at 27% +/- in my case.