Thanks but there is a 1098 for actual (unrelated) scholarships and this wasn't work that occurred at a university so doesn't truly fir the definition of a scholarship. Secondly, the second way puts it in as unearned income, which then triggers the "kiddie tax" and lowers the standard deduction (for dependents) that also makes more tax due than there should be (income doesn't even fit the threshold for filing).
After extensive research and calling Turbo Tax, it was decided the best way to do it is to put it under less common income, Misc Income and then unreported earned income which then goes to line 1h on the 1040;. income is still taxable, but as earned income.
Do you disagree?
