Thanks @KrisD15 You are so right! I finally figured out why my son has to pay extra tax due to Kiddie tax. It is unfortunate that his summer scholarship is a taxable income under parents' tax rate :( Is that common for school to issue 1099-misc for that type of summer scholarship? Do student usually have to pay tax on that? The scholarship support my son's summer research in school's lab, the amount is usually sufficient to cover housing and food. It doesn't pay for any tuition, no course credit earned. Are there any deduction on that type of scholarship?
