Question

My 23 year old full time college student lost his job due to CV and received unemployment benefits over $18,000. Does he have to complete form 8615?

Forum|Forum|5 years ago
February 3, 2021
1 reply
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It's unearned income but not investment related. 8615 doesn't seem applicable due to the aforementioned. I ran some mock numbers and his fed/state tax will double. Ouch!

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MAK70

Yes, Form 8615 is needed. For Form 8615 "unearned income" includes unemployment compensation. The income over $2,200 is taxed at the parent's rate if the parent's rate is higher than the child's. "Child" in this case is a full-time student at least age 19 and under age 24 at the end of 2020 who did not have earned income that was more than half of his support.