It is saying that I have to fill out "Tax for Certain Children Who Have Unearned Income" and I'm not sure why

[Hal_Al · Accepted solution]

To prevent the shifting of assets to children, so the investment  income is taxed at the child's lower rate, Congress established the "Kiddie Tax", where a child's investment income is taxed at the parent's marginal tax rate.

Assuming you are the kiddie and not the parent, TurboTax has sensed that you qualify and is requiring you to prepare form 8615.

If you are the parent, you actually have to initiate form 8814 yourself. TurboTax doesn't do that.

If a child's only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on the parent's return, using form 8814. Enter at Less common income / Child's income.
But, it is usually best for him to file a separate return, as qualified dividends and capital gain distributions could be taxed at a higher rate on the parent's return. 

[A Olivieri]

I’m trying to currently complete this form and Turbo Tax is entering the incorrect information and won’t let me fix it. Please help!!!

[JamesG1]

What is the incorrect information that is being entered?  Please clarify.

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 didn’t 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 didn’t 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 doesn’t file a joint return for 2021.