SCHOLARSHIP INCOME

[dw39]

My son received a little more than $25,000 in scholarship income above the cost of tuition.  TT is saying he owes about $8k in federal taxes. Is this because the bulk of this amount is tax at his parent's higher income tax bracket?

[Bsch4477]

Exactly. The amount of scholarship in excess of education expenses is subject to the Kiddie tax and taxed at his parents’ rate.