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January 31, 2021
Question

Does UC get included in std ded. for depen. who made $2K sal & $5K UC in 2020? i.e. standard deduction = $350 + salary, but not UC. she now owes ~$700

  • January 31, 2021
  • 1 reply
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10% was WH from UC, the rate should have been about 23% to make this tax pmt zero.  How can this be on such a low salary?

1 reply

KrisD15
January 31, 2021

No, for figuring a dependent's Standard Deduction amount, Unemployment Compensation is treated as Unearned Income. 

 

It is not possible, without seeing the return, to answer your question about the tax owed. If a dependent earned 2,000 and also received 5,000 in unemployment with 10% withheld, and that is all of the dependent's income, owing 700 seems excessive. 

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