@TaxGuyBill with the student getting up to the $12k standard deduction next year, unless the scholarship recognized as income is over that, the taxable income will end up $0 even with the kiddie tax. I just tested a student in TT this year making $6350 in room & board scholarship, it added it to the kiddie tax and yes got reported but bottom line no tax owed and I assumed the parents were at $400k in income and divs of $25k. Next year it will be $12k. Intertwining a scholarship and making it earned income up to $12k may be the most beneficial thing someone can do next year to maximize full Education tax credits.
**I don't work for TT. Just trying to help. All the best.
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**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.
