LOGO

PROVIDING OUTSTANDING
TAX SEMINARS SINCE 1995

REGISTER

    Sign up for our tax news emails:

    We will not share your email with anyone else

    Kiddie Tax and Unemployment Benefits

    As discussed in earlier posts, the American Rescue Plan, which was enacted on March 11, 2021 provides a retroactive exclusion for unemployment benefits received during 2020 (up to $10,200 per taxpayer).

    For younger taxpayers who are subject to the kiddie tax, unemployment benefits in excess of the $10,200 exclusion received by the child are treated as unearned income for the purpose of the kiddie tax, and the kiddie tax applies to such benefits. 

    The kiddie tax is computed on Form 8615, and it can apply to children under the age of 24 who are full-time students.

    The information provided herein is provided with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional service. As such, M + O = CPE, Inc. and the author disclaim any responsibility or liability for the information supplied herein or the application of said information.