Hal_Al
Level 15

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You now have two answers telling you to do it differently. Neither answer is wrong,  The income can go in either place.  It is usually better, for a student-dependent, if it is entered on line 8r, of Schedule 1, as scholarship.

 

"Other income", on line 8z of Schedule 1, is classified as unearned income. Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $12,950 filing requirement and the dependent standard deduction calculation (earned income + $400).  It is not earned income for the kiddie tax and other purposes (EIC. IRA contributions).

 

A dependent's standard deduction is the higher of $1150 or his earned income + $400, but not more than $12,950.  Example: student-dependent's only income is $8000 stipend, not on a W-2.  If he reports it as other income, his taxable income will be $8000 - 1150 = $6850.  If he reports it as scholarship,  his taxable income will be $8000 -  $8400 = 0