@OldSchoolTax wrote:
Remarkably, it does seem to say that unearned income should be treated like earned income for the purpose of determining the deduction.
Not all unearned income is treated as earned income. Only taxable scholarship income specifically.
@OldSchoolTax wrote:
In any other context, Excess Scholarship is considered unearned income.
Not quite. Taxable scholarship income is also treated as earned income for determining whether a dependent is required to file a tax return. But for other purposes it is considered unearned income.
I think taxable scholarship income is the only type of income that gets this mixed treatment.
