I reported it as "SCH" on line 7 1040 per IRS pub 970. Turbotax then generated form 8615 kiddie tax which would tax this at the parents' rate. Doesn't seem right. It's not investment income.
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The kiddie tax applies to all unearned income of dependents, not just investment income. See below for an explanation.
https://ttlc.intuit.com/replies/3301446
The kiddie tax only applies to amounts over $2,100. The FAQ below explains how to report it.
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