For children under age 18 and certain older children, unearned income over $2,300 is taxed at the parent's rate if the parent's rate is higher than the child's and if the child's unearned income is more than $2,300. Did you enter the income in TurboTax? (It will not prompt you if there is no unearned income reported.) See Tax for Certain Children Who Have Unearned Income
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