why I am asking this question is, if it is earned income, and the student is not required to file tax return, then his income is not considered in caculation of premium tax credit of health insurance by marketplace. if it is unearned income, the student's income is included in household income, then the extra AOTC may not be worth that decrease of PTC.
You'll need to sign in or create an account to connect with an expert.
Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $13,850 filing requirement ($14,600 for 2024) and the dependent standard deduction calculation (earned income + $400 ($450 for 2024)). It is not earned income for the kiddie tax and other purposes (e.g. EIC). For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.
Entering taxable scholarship income, in the income section of TurboTax (TT) , will report the income as unearned income on line 8z of Schedule TT can handle the dual treatment of the income.
Q. Will the student have to file tax return if students total income is $3500 work study + this $3000?
A. No, if the work study is reported as earned income too. He's under the filing threshold.
A dependent must file a tax return for 2024 if he had any of the following:
Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.
In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
xu3
New Member
TaxGal7
New Member
KarenL
Employee Tax Expert
ashley_ernest
New Member
beasleychris19923
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.