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unearned income, dependent

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    unearned income, dependent

    My client's husband has severe cancer. They have 3 children. The three children receive income from the ill father teacher's pension fund under a disability code.

    Is this Unearned income under IRS code thus necessitating the kids to each file a tax return?

    The amount is over the $800. unearned income.

    Thanks!!

    #2
    Children's SSN?

    I am presuming a 1099 came in the children's SSN... yes, each child would need to file a tax return. Also be aware of the Kiddie Tax rules.

    Bill

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      #3
      Need to know the ages of the children to give a good answer.

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        #4
        Dear Unregistered...

        Originally posted by Unregistered
        Need to know the ages of the children to give a good answer.
        That's why I cautioned to "be aware" of the rules instead of saying "the Kiddie Tax rules applied" -- cuz it does depend on the ages.

        Also note that the age for Kiddie Tax goes from 14 to 18 for 2006.

        Bill

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          #5
          This is an 04 return. At that date, the children were 10, 7, and 2.

          Thanks so much for your assitance!!

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