The issue is whether or not the internship stipend reported in box 3 of a 1099-Misc is EARNED? If not, and you are claiming your child student on your tax return, Turbo tax only gives the student am $1,100 standard deduction...MUCH LESS than if he/she were reporting it as earned income (in this case, the student made $7,300).
So - should money from a student internship be considered EARNED? If I say no - this student owes $623 Federal tax. IF I say yes, he owes $0!!
