Unemployment compensation is unearned income. As such the student-dependent only gets $1100 standard deduction (not $12,400). More importantly, that unearned income is subject to the kiddie tax, where his income is taxed as his parent's marginal tax rate.
Now the good news: based on the new covid law, the first $10,200 of unemployment is now tax free, on 2020 tax returns.
You should wait for TurboTax to update the software before filing. Or see these instructions for filing a paper return: https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemploym...
