I'm unsure if TurboTax is correctly calculating kiddie tax. I'm reporting my 7 year old's (UTMA investment account) unearned Dividend Income in 2021 of $2,199 under my Tax return. Turbotax calculates this as $110 in taxes (in other words at 10% childs rate of the amount over $1,100)....Okay...but.....
The Turbotax articles explain "Remember that the Kiddie Tax only applies to the unearned income in excess of $2,200. However that same article goes on to provide the following illustration for 2021which contradicts this as follows. I'm Confused!
1. $0-$1,100 isn't Taxed
2. $1,100 - 2,200 is taxed at child's rate
3. Over $2,200 is taxed at parents rate.
So is there tax applicable only over @$2,200 or does it start over $1,100 threshold?
