Kiddie tax

Forum|Forum|5 years ago
March 16, 2021
2 replies
5 views

Hello. I need advice. I received unemployment (I don't understand why this is even lumped with kiddie tax, utterly unacceptable) and my mom is refusing to give me her taxable income UNLESS she can claim me, which this year she can't. She's emphasized enough that I'm independent and can't fathom this extra information. She would rather believe H&R block over me and they have no idea what this tax even is. It's honestly putting too much stress on me and I can't deal with this. I don't feel like going through the hassle of requesting the information from the IRS because 1), she hasn't filed taxes yet and 2) their swamped. By the time they get it to me April 15th will pass on by.

If I just estimate her tax can the IRS fix it down the line if I overpay or underestimate? Can they just send me a bill for the remaining tax to pay if any? I already paid $2044 with the estimate alone, even though without it, it would've been $710. I intend to amend my taxes because of the unemployment exemption so I expect a refund back anyway.

Any closure is appreciated.

Anonymous

I hate to add to the family discord, but unless the person your mother is seeing at H&R Block is utterly incompetent and/or can't read (which I doubt is the case) they most certainly did NOT tell her that you would not need this information to pay taxes properly on your unemployment compensation. (Yes, I am calling this BS.)

Unemployment is clearly spelled out in plain English as one of the types of income upon which this tax is paid right in the form's instructions, under the definition of unearned income: https://www.irs.gov/instructions/i8615#idm[phone number removed]152

You need that information in order to properly prepare your return. However, if you can't get it, then yes estimate and the IRS can sort it out for you later.

As for the matter of dependent/not a dependent, the IRS will be happy to decide for the both of you if she is entitled to claim you or not. To get them involved, she claims you and you file stating you can't be claimed. One of you will have to file by mail in this battle, though, and you'll both get letters from the IRS explaining the rules urging the one of you who didn't follow them to file an amended return.

You could also check to see how the rules apply in your situation here: https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

When that doesn't happen they start asking for the proof, and whoever can prove his or her case gets to keep their refund as filed and the other one gets a big bill with interest and penalties tacked on.

You need her income so that you can pay her higher tax rate on your unemployment. She's not "helping" you by giving it to you, aside from helping you to comply with the law. Show her the form, and its instructions and ask her what you need. If you are, in fact, qualified to be her dependent she doesn't need you to "let" her claim you and if you're not qualified she can't decide to just do it anyway.

As an aside, if you wait a week or so until the exemption for some of the unemployment compensation that passed last week is written into the software, you might save some money and frustration.

Breezy241Author

Level 2

That's what she told me on the phone, that the H&R guy said he's never heard of the kiddie tax and he asked someone else that question too. She has another tax women that said she doesn't need to give me her information unless she claims me. This is clear cut without the IRS involved, she cannot claim me this year. I think she just doesn't want to share her taxable income.

I graduated may 2020 and moved out in April and have paid my own bills for the year. Because I didn't live at home for 6 months AND supported myself (she agreed that this is true); she can't claim me, but she thinks she can and that's fraud. I'm not lying on my taxes because she refuses to 'help me'.

I've literally tried to break this down to her, she looked up the form, she's NOT budging. I just told her forget it then. All I'm asking is can I just file with an estimate and the IRS fix it because I know they can make adjustments down the line and send me a bill, thats all I want to know. Someone said they can. My mom is a hardass and just isn't reasonable.

Plus I already filed so I intended to amend anyway because of the unemployment exemption.

LCH36WFB

Level 2

If you are filing as a single, independent person, why would you need your mother's taxable income? As long as you provided at least one-half of your own living expenses you should qualify as an independent. (Check the rules to verify you qualify.) The 'kiddie tax' is for dependent children whose income is taxed at their parents tax rate.

Anonymous

True - if not a dependent AND over 18 for tax year 2020 , then it doesn't apply. However, if you were a full-time student in 2020 you are your mother's dependent, like it or not, almost certainly.

Breezy241Author

Level 2

Dependency status doesn't matter for kiddie tax. It's based on age. Regardless if I choose either option the form still comes up. Mostly in relation to the support question because unemployment is unearned income, and it was a majority of my income for 2020.

How can you say 'almost certainly' despite me already explaining my situation? I'm not a dependent for this tax year. Just because I was a full time student for 5 months of 2020 doesn't dictate that overall status. There are other rules that apply, which I explained.