I have the same issue here. College student - last year received 1099-misc for about the same amounts. This year received 1099-NEC for same type of work. Last year, standard deduction was the 1099-MISC + $350. This year Standard Deduction is $1100 because the 1099-NEC income calculates as unearned. So since earned income is less than $750, child gets standard deduction of $1100.
This certainly seems like a bug in the classification of 1099-NEC as unearned income.
I understand the intent of the 8615 to go after the 'kiddie tax' where children get assets and unearned income taxed at a lower rate. But this is truly earned income from part time jobs that is being classified as unearned income.
I have tried to do the Schedule-C route but that resulted in Self Employment tax being even worse. So I deleted those forms and started over this time answered "No" to "Do you have expenses for this income?" question which does not generate a schedule "C". But the income still shows as unearned income, resulting in a Standard deduction of $1100 instead of the sum of the 1099-NEC's resulting in owing $400 in taxes this year over last year for the same amount of income.
Was this the intent of the law to tax part time college students making a couple thousand bucks at part time jobs at their parents tax rates? Or is this a bug? If it is a bug, will it be fixed in time to file this year?
