I prepared tax returns for each child (not filed yet), and for Child1, TurboTax did not treat the taxable scholarship as unearned income (the program did not calculate a child tax for Child1). But for Child2, TurboTax is treating the taxable scholarship as unearned income, and the program wants me to complete Form 8615, it's requesting the parent's taxable income (MFJ), and it's computing a child tax. Guess I'm confused about TurboTax's different treatment for Child1 and Child2 regarding the taxable scholarship income. I entered the taxable scholarship income the same way on each child's tax return (i.e. entered the taxable amount directly in the "scholarship/grants" field in the "Education" section ... I did not enter 1098-T amounts).
