My 22 year-old child is a full-time student and my tax dependent. She worked for a small company (no HR department or formal accounting) during the summer that has given her a 1099-NEC for wages of ~$6,000. Turbo Tax seems to considering the income as "unearned income" and forcing the use of form 8615, including applying my tax rate to her income. How should this "self-employment" income reported on the 1099-NEC be reported to avoid getting hit with my tax rate as if it were unearned income?
