I have a 19 year old child in college who received unemployment compensation last summer after being furloughed in 2020. She is claimed as a dependent on my tax return and is subject to the kiddie tax. My AGI is well over the $150k threshold for the $10,200 exemption (I was not unemployed). If she files her 2020 tax return separately, will she be exempt from taxation on her unemployment (it was under $10,200)? Will she be eligible for her own stimulus payment?
Thanks for any advice!
I understand that they aren’t eligible for a stimulus payment. My question is whether or not their unemployment compensation is reduced by $10,200 if they are a dependent of someone making over $150,000.