jhbvtacpa
Level 5
04-10-2021
09:49 PM
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Here's a new one for TY2020!!
Single mom makes $95K. Her 23 year-old son was a full-time student who graduated during TY2020. He had $18k in unemployment and $500 in wages.
Mom says she still provided over 50% of his support, so she should be able to claim H of H. Is the kid going to be subject to Kiddie Tax on the unearned income?
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BobKamman
Level 15
04-10-2021
09:56 PM
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Only on $7,800 of it?
Actually, even less than that, but I forget the amount where Kiddie Tax kicks in.
He still qualifies her for the $1,400 EIP3, so I think the family comes out ahead.
jhbvtacpa
Level 5
04-10-2021
10:02 PM
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That's what I'm thinking, the $7,800 less the $2,200 exclusion kicks $5,600 into Kiddie Tax land.
Just seems crazy that the unemployment comes into play!