It seems this issue may be related to a glitch in the TurboTax software. We have a similar situation--son who made money while also a student, received a 1095-NEC for the work that was done, and limited interest income )<$100). In TurboTax in demographics and other areas, all questions related to the requirements for when someone needs to complete an 8615 are asked except the question about unearned income > $2200. No matter where the 1099-NEC information is entered--we have tried as part of Business income (self-employment) as noted, or under 1099-MISC and other Common Income, or as Miscellaneous income--it generates the need to complete an 8615.
On the review form, there is a section called Child 18-23 Smart Worksheet, with a check "Yes" to the following question: "Was the child either 18 years old or a full-time student age 19 to 23 with unearned income more than $2,200 and their earned income did not exceed one-half of their support?"
This specific question never appears in questions asked earlier in TurboTax and the answer ("Yes") must be derived from other data that had been entered. It must somehow code the 1099-NEC as "unearned income" no matter where or how it is entered into TurboTax.
We have cleared the entire form, reentered data, and seem to be unable to escape the requirement to complete an 8615 even though there is no unearned income > $2200.
