Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
celizabethd
New Member

Should my dependent daughter (full-time college student), who received unemployment (summer), be taxed at my (parents) tax rate?

With her unemployment (1099-G) plus other employment income she made over the minimum-to-file amount. Now huge tax bill (went from not having to file at all to owing thousands).
2 Replies
Bsch4477
Level 15

Should my dependent daughter (full-time college student), who received unemployment (summer), be taxed at my (parents) tax rate?

Unfortunately unemployment payments are unearned income and subject to the Kiddie Tax if the child has a filing requirement. 

DanaB27
Expert Alumni
Intuit Approved!

Should my dependent daughter (full-time college student), who received unemployment (summer), be taxed at my (parents) tax rate?

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v