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Unfortunately unemployment payments are unearned income and subject to the Kiddie Tax if the child has a filing requirement.
Yes, unemployment is unearned income and if a child had unearned income of more than $2,200 then the the Kiddie Tax is triggered. The Kiddie tax uses the parents tax rate.
Please see IRS Topic No. 553 Tax on a Child's Investment and Other Unearned Income (Kiddie Tax) for additional information.
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