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Get your taxes done using TurboTax
Taxable scholarships are a "hybrid" income category. They are unearned income for most purposes, including the "kiddie tax". But taxable scholarships are treated as earned income for purposes of a student-dependent's standard deduction.
Earned income includes money from wages, salaries, tips, bonuses, commissions, and self-employment income. Also, the IRS considers disability retirement benefits as earned income until you reach the age at which you could have received a pension or annuity if you didn't have a disability.
‎October 14, 2022
6:18 AM