Unemployment compensation's impact on Credit for Qualifying Children and Other Dependents credit in 2022

[DMS741]

Does unemployment compensation count towards the $4,400 maximum threshold?  Using W-2 income my adult daughter's income is under the $4,400 amount, but when combined with received unemployment compensation the total is over $4,400.

[xmasbaby0]

Yes the unemployment counts. The only income that would not "count" would be Social Security.   If her unemployment plus any other income are over $4400 she cannot be claimed as a qualifying relative.

[SharonD007 · Accepted solution]

Yes, unemployment counts toward gross income for a qualifying relative dependent. The IRS states that “Gross income means all income the person received in the form of money, goods, property and services, that isn’t exempt from tax.”  See IRS Qualifying Relative Dependents for more information.

Also review the TurboTax article Rules for Claiming a Dependent on Your Tax Return for additional information.