10,200 unemployment compensation exception for dependents

[ss72]

New Exclusion of up to $10,200 of Unemployment Compensation

https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation

Does this rule apply to dependent children unearned/unemployment income? Is parent income not taken into account when applying this rule? What if parent income is more than the AGI limit of $150K to exclude $10,200 amount?

I noticed that while filing return for my kid who has unearned income greater than $2,200, the schedule 1 line # 8 entry is UCE (unemployment compensation exclusion)  with a negative amount that offsets unemployment compensation from line #7.

Form 8615, line 6 is showing parent income correctly and the children is claimed as dependent.

[sjrcpa]

Dependents are eligible for the unemployment exclusion.

[qbteachmt]

@ss72 

"My kid"?

Are you using ProSeries, ProConnect or Lacerte to prepare your Clients' tax return?

Otherwise...

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