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Unemployment compensation's impact on Credit for Qualifying Children and Other Dependents credit in 2022

Forum|Forum|3 years ago
April 5, 2023
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Does unemployment compensation count towards the $4,400 maximum threshold? Using W-2 income my adult daughter's income is under the $4,400 amount, but when combined with received unemployment compensation the total is over $4,400.

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Best answer by SharonD007

Yes, unemployment counts toward gross income for a qualifying relative dependent. The IRS states that “Gross income means all income the person received in the form of money, goods, property and services, that isn’t exempt from tax.” See IRS Qualifying Relative Dependents for more information.

Also review the TurboTax article Rules for Claiming a Dependent on Your Tax Return for additional information.

X

xmasbaby0

Employee

Yes the unemployment counts. The only income that would not "count" would be Social Security. If her unemployment plus any other income are over $4400 she cannot be claimed as a qualifying relative.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

SharonD007Answer

Yes, unemployment counts toward gross income for a qualifying relative dependent. The IRS states that “Gross income means all income the person received in the form of money, goods, property and services, that isn’t exempt from tax.” See IRS Qualifying Relative Dependents for more information.

Also review the TurboTax article Rules for Claiming a Dependent on Your Tax Return for additional information.

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