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What income is reported is reported on the tax return?  Does the income reported meet the definition of unearned income?

IRS Publication 929 page 15 defines unearned income here.

Unearned income defined

Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. It includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from trusts, and unemployment compensation. Unearned income includes amounts produced by assets your child obtained with earned income (such as interest on a savings account into which you deposited wages).

IRS Form 8615 must be filed for any child who meets all of the following conditions.

1. The child had more than $2,200 of unearned income.
2. The child is required to file a tax return.
3. The child either:
   1. Was under age 18 at the end of 2021,
   2. Was age 18 at the end of 2021 and did not have earned income that was more than half of the child's support, or
   3. Was a full-time student at least age 19 and under age 24 at the end of 2021 and did not have earned income that was more than half of the child's support.
4. At least one of the child's parents was alive at the end of 2021.
5. The child does not file a joint return for 2021.

For children under age 18, unearned income over $2,200 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,200, use Form 8615 to figure the child's tax.

IRS Form 8615 is described here.

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