I have already filed our (my wife and my) taxes. My children file independently. My children do no have more than $11,000 in unearned income, but do have 1099-DIVs from UTMAs. To that end, I still do not understand:
- Why they have to fill out form 8615;
- Why their deduction is just $1,150 for ALL income; and
- Why their tax rate is almost 40% using form 8615.
TurboTax has the wrong tax for my wife’s and my joint 1040. The calculated tax is almost $6,000 more than my actual tax.
