hamida_surti
Level 2
03-11-2021
06:00 PM
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I have a client with a 21 year old full time student. This year He received around 3K in wages and around 12K in unemployment compensation due to Covid. The questions are:
Is he still a dependent on the parents return. He lives in the family home and they have family meals paid for by the parents.
Do the parents claim the Education credits?
Is there a way he does not have to go through the kiddie tax process due to the unearned income.
Is he still a dependent on the parents return. He lives in the family home and they have family meals paid for by the parents.
Do the parents claim the Education credits?
Is there a way he does not have to go through the kiddie tax process due to the unearned income.
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rbynaker
Level 13
03-11-2021
06:25 PM
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Your best bet at this point is to wait until the software is updated and $10,200 of unemployment is excluded from gross income. Then kiddie tax won't be too much of a problem.
hamida_surti
Level 2
03-13-2021
01:36 PM
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Thank you for replying, I am not sure about what you mean when you say wait till the software is updated. Can you please elaborate on that a little bit.
sjrcpa
Level 15
03-13-2021
03:03 PM
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One of a hundred times mentioned in the last few days
The more I know the more I don’t know.
