I'm a 20 year old, full time student and a dependent with unearned income exceeding $2500 from scholarship refunds. I filled out form 8615 and filed through TurboTax before the IRS rejected my return for errors related to form 8615. TurboTax updated their 8615 form and when I attempt to correct my error, it is now asking me more questions about my parents income. Upon answering these questions, my federal refund drops from $2480 to owing $1745.
Specifically, the amount changes when I enter my parent's net long term capital gains amount (~ $48,000).
I'm confused because I barely exceed the $2500 threshold (my unearned income is $2543) and it results in over a $4000 difference in taxes, which would be paying more than all of my unearned income back. I can't even figure out how the tax could possibly be calculated at that amount.
If anyone knows what is wrong, or how TurboTax is calculating the tax on unearned income I would greatly appreciate help/advice.
