I'm a third-year college (20) student filing as a single dependent of my parents. I'm reporting about $3,000 in earned income from campus jobs/gig work and $20,000 in taxable scholarships (university gift aid and Pell grants used to pay for travel, room/board, etc.). I assumed that because I am being claimed as a dependent, my standard deduction would be limited to my earned income +$450, so only about $3,450. However, TurboTax (and other tax softwares I have worked with) are giving me the full standard deduction amount of $14,600. I have verified that I have marked myself as being as claimed as a dependent, and I believe the (taxable) scholarship is being entered into line 8r of the Schedule 1 as a scholarship/fellowship not reported on a W2.
While I certainly prefer the greater deduction, I'm confused to how I qualify for it, since I thought that taxable scholarships counted as unearned income. Any clarification would be greatly appreciated, thank you!
