Question

Why did I have to include how much my parents make on my taxes? I am 18 years old and they claim me as a dependent.

Forum|Forum|5 years ago
January 29, 2021
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If you reported unearned income (interest, dividends, capital gain distributions) you may need to pay taxes at your parent's top marginal tax rate. This is to prevent parents from shifting income producing investments to their children so income earned on those investments is taxed at a child's lower tax rate.

The income threshold is $2,200. If your unearned income is less than $11,000, you may be able to report your income on your parent's tax return. You can learn more about it here:

https://www.irs.gov/taxtopics/tc553

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