Why are they asking for my parents tax information if I am an independent?

If you have unearned income (scholarship, unemployment, investment, etc.) over a certain limit and you are dependent aged, you are subject to the Kiddie Tax.  The Kiddie Tax is the tax levied on the portion of a child's unearned income that exceeds $2,200. Children who only had earned income from a job or self-employment, don’t make enough money to be required to file, or are filing jointly with their spouses are exempt from the Kiddie Tax.

The Kiddie Tax only applies to unearned income in excess of $2,200. Here’s an illustration of how a child's unearned income in 2021 would be taxed:

1. $0 - $1,100 isn't taxed
2. $1,100 - $2,200 is taxed at the child’s tax rate
3. Over $2,200 is taxed at the parents’ rate (or the child’s rate if it's higher)  ***  this is why we are asking for your parent's information.