Hello all,

My situation is somewhat complicated, so bear with me. I am preparing this return using ProSeries Professional 2020.

My client is a full-time college student aged 23 who lived at home with his mom throughout all of 2020. He received approximately $17,000 in unemployment comp while also having a W2 for approximately $3,800. Throughout the year he used nearly all of the money, including both "earned" and "unearned" income sources, to support himself. His mom's AGI is approximately $30,000 and she is able to file as HOH due to his younger brother and sister still being in the house. Due to his mom's low AGI she qualifies for "affordable living" in the complex where they reside thus making the overhead for house expenses significantly decreased.

My question has a few parts: 

1. Does unemployment income count when performing the support test of a qualifying child?

Being that my client is under 24 and a full-time student, while also living at home, he meets all other dependent tests beside the support test (if unemployment income is factored in as useable for support).

2. Would Form 8615 be required if he supports himself using UNEARNED income?

The way the question is phrased on the 8615 leads me to believe that only earned income is used in determining support on this form. This would mean that the $3,800 of W2 wages would be the only income considered in determining support, making him fill out the form as he reasonably could not support himself on only $3,800 worth of income.

3. Can my client be both independent and required to fill out form 8615?

In a normal year a student in this case would not qualify for unemployment comp based on the scenario thus eliminating the need for the kiddie tax form entirely. By not qualifying as a dependent, my client would also be entitled to receive the recovery rebate credit (stimulus) and any future stimulus payments that get passed.

I appreciate any information on this subject as my research has led me to a dead end. Thank you.