7890
Level 3

 

    Looking for help! Have come across several instances already of student 19-23 with unemployment benefits being subject to kiddie tax because of the CARES Act laws.  I understand that IRS says it is considered unearned income for 8615. Question I have , does anyone have an opinion as to whether or not parents can elect to claim the U/E on their own return as they can with interest and dividend income?  After all it is all unearned income.  If so how would federal and state withholding from the U/E statement be handled?  Parent  has no taxable income after deductions and child tax credits. Any thoughts are appreciated!

 

Thank you!

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