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State tax filing
Yes, unearned income (including scholarships) is subject to the Kiddie Tax. For 2018, Kiddie Tax rules change and wil be taxed at Trust rates.
However, for some mysterious reason the Standard Deduction treats scholarships as 'earned' income. In other words, the student will get the $12,000 Standard Deduction, and only the income above that would be subject to Kiddie Tax.
‎June 4, 2019
5:31 PM