My son and us got audited and won with scholarship and other income being taxable income qualifying for over half his own support related to 2014 tax return. I included this in the forum in 2015 or 2016, I believe TT changed program as we had to use competitor software to get it to work in past. He has taken his own exemption every year since then and got AOTC and even refundable portion. He has not paid kiddie tax on the amount as he reported it as earned income. This was at the advice of the employers partnership tax preparers. Bottom line he has gotten a refund for 2014-2016 so far and only 1st year was it pulled and passed audit. The tax preparer prepared the standard argument for us. Basically, we reported the scholarship as 1099 and not during the education interview. Many responses to OP's have told the OP to report the 1099 and w-2 as earned income and TT does not put that as unearned unless it's entered in the education interview. He does not get eitc as he's under 24 and a student.
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
