Question

Kiddie Tax and unemployment tax relief over 150K

Forum|Forum|5 years ago
March 23, 2021
1 reply
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My AGI is above 150K but my dependent is around 13K with 9000 from unemployment. Does my dependent receive the the benefit of the American Tax Rescue act or not, because I made over 150K and he is getting taxed under my rate because of the kiddie tax?

macuser_22

Employee

I am not sure what you are asking. Unless he received unemployment himself and has his own 1099-G form, he would not enter yours.

I believe the 8915 interview asks for the parents AGI (1040 line 11).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

R

ramlongAuthor

Here is the scenario

My income is 150K +

His income in 13K (3000 earned and 10000 unearned) which puts him into the kiddie tax category.

My question is does he get the 10200 unemployment tax break from the new Rescue pkg OR does he not because now he is taxed at my rate which is above the cutoff of 150K to qualify for previously mentioned tax break

macuser_22

Employee

None of his income is unemployment so the "rescue act" does not apply to him at all. It applies to you. He is taxed at your tax rate as your return is when it is filed after you apply the credit to your tax return. I believe your income to too high to get any exclusion.

The $10,200 is NOT a credit, it simply excludes up to that amount of taxable unemployment payments form your taxable income as reported on a 1099-G form.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**