Hal_Al
Level 15

Get your taxes done using TurboTax

It is proper that you are getting those questions. You ARE subject to the kiddie tax  and most of the $18K will be taxed at your parent's tax rate. 

 

Yes, your tax will shoot up dramatically because it was entered as unearned income. Unearned income over $2700 is subject to being taxed at the parent's tax rate (the kiddie tax).