My experience with TurboTax Premier for tax year 2020 indicates the Kiddie Tax is still calculated incorrectly. It's 6/5/2021. I've downloaded all the latest updates, but from what I can see, my kids' unearned incomes are being taxed at the tiered estate tax rates. I'm now going to have to use the paper form to see what calculations I get. When looking at the TT Form 8615 (Tax for Certain Children Who Have Unearned Income), it appears TT is calculating the combined parent/child tax amount on line 9 incorrectly, resulting in line 11 being too high. This means line 18 (the child's tax) is also too high. I took the income amount on Form 8615 line 8 and plugged it into tax calculators from SmartAsset.com, Intuit, and H&R Block. All three returned values about $4000 less than what TT Form 8615 calculated! I seem to recall that TT from a year or two ago had a box you could click to calculate taxes according to pre-TCJA rules, but that's nowhere to be found now. I'm really disappointed I must do extra work for something TT should have fixed long ago.
