Q. where is the best place to claim the $4000 of additional income to reflect adding that portion of the taxable income from the scholarship? Within the Education as an additional scholarship, or put it underneath additional unearned income?
A. Within the Education as an additional scholarship. This properly identifies it as Taxable Scholarship and puts it om line 8r (new for 2022) of Schedule 1. Scholarship is treated as earned income for purposes of calculating a dependent's standard deduction (earned income + $350).
