To prevent the shifting of assets to children, so the investment income is taxed at the child's lower rate, Congress established the "Kiddie Tax", where a child's investment income is taxed at the parent's marginal tax rate.
Assuming you are the kiddie and not the parent, TurboTax has sensed that you qualify and is requiring you to prepare form 8615.
If you are the parent, you actually have to initiate form 8814 yourself. TurboTax doesn't do that.
If a child's only
income is from interest and dividends, Alaska PFD or capital gains
distributions shown on a 1099-DIV, there is a provision for entering it on the parent's return, using form 8814. Enter at Less common income / Child's
income.
But, it is usually best for him to file a separate return, as qualified
dividends and capital gain distributions could be taxed at a higher rate on the
parent's return.
