please help us figure this out. We'd like to have our son claim the extra $2000 in scholarships that exceeded tuition/fees because obviously his tax rate is lower. Can we do this? (I've heard that kids pay this at their parents tax rate; hoping to avoid that!)
Student: income 7000$ Age 20; dependent. he's filing taxes and will receive a small amount back.
scholarship amount exceeding tuition/fees: $2000.
Books for two semesters: $700 that arent on 1098t
please clear up how this all works! who pays the taxes on this amount? where do we put it on his tax form? or on our tax form? very appreciated!
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The income is always listed on the child's tax return. However, it is also correct that the tax may be calculated at your rate on the child's return (via Form 8615, aka "Kiddie Tax")
In order for this dreaded Kiddie Tax to be an issue, the unearned income (which would include taxable scholarships) has to exceed $2100.
The income is always listed on the child's tax return. However, it is also correct that the tax may be calculated at your rate on the child's return (via Form 8615, aka "Kiddie Tax")
In order for this dreaded Kiddie Tax to be an issue, the unearned income (which would include taxable scholarships) has to exceed $2100.
If you aren't providing support, why claim as dependent? If scholarships, earned and unearned income provide 100% support except for maybe health insurance....
much obliged - the grant went to a short outing abroad and unquestionably didnt spread any books for customary classes during the year. so we'd in any case prefer to assume that praise; have receipts for books. I'll post inquiry.
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