Is anyone having problems with standard deduction for dependent child in college who has taxable scholarship income?
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New Member

Is anyone having problems with standard deduction for dependent child in college who has taxable scholarship income?

TurboTax gives daughter $1,050 as standard deduction. I looked at the standard deduction worksheet for dependent children and followed the IRS instructions. She should be receiving the $12,000 deduction. The instructions specifically say in the case of this worksheet, taxable scholarship money should be treated as earned income. TurboTax must be counting it as unearned in order to get the $1,050 number.

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Level 15

Is anyone having problems with standard deduction for dependent child in college who has taxable scholarship income?

Per the IRS, for purposes of the standard deduction, earned income also includes any part of a TAXABLE {not gross}scholarship or fellowship grant.
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Level 15

Is anyone having problems with standard deduction for dependent child in college who has taxable scholarship income?

You have to deduct the qualified educational expenses from  it.
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Level 15

Is anyone having problems with standard deduction for dependent child in college who has taxable scholarship income?

You have to carefully enter the Scholarship income. It must show on line 1 of form 1040, with the code SCH,  and not Line 21, Schedule 1 (other income).  Do not enter it at income, in TurboTax. Enter it at the educational expenses section of the program.

Type> scholarship income <in the find box. Then "Jump to".

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New Member

Is anyone having problems with standard deduction for dependent child in college who has taxable scholarship income?

Thanks very much, it worked! Thought I had to enter as "misc income."
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