Dependent with income over 4300 - Kiddie tax

Forum|Forum|5 years ago
March 12, 2021
1 reply
11 views

I have a client with a 21 year old full time student. This year He received around 3K in wages and around 12K in unemployment compensation due to Covid. The questions are:
Is he still a dependent on the parents return. He lives in the family home and they have family meals paid for by the parents.
Do the parents claim the Education credits?
Is there a way he does not have to go through the kiddie tax process due to the unearned income.

ProConnect Tax

This topic has been closed for replies.

rbynaker

Level 13

Your best bet at this point is to wait until the software is updated and $10,200 of unemployment is excluded from gross income. Then kiddie tax won't be too much of a problem.

H

hamida_surtiAuthor

Level 3

Thank you for replying, I am not sure about what you mean when you say wait till the software is updated. Can you please elaborate on that a little bit.

sjrcpa

Level 15

One of a hundred times mentioned in the last few days

https://proconnect.intuit.com/community/proconnect-tax-discussions/discussion/2020-unemployment-due-to-new-stimulus-package/00/141055

The more I know the more I don’t know.

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