The scholarship money must be reported for 2023. Reduce the amount by the box 1 tuition. Depending on the situation, he may need to claim the kiddie tax as well.
- Scholarship income is a hybrid of earned income and unearned income.
- Earned income for purposes of the filing requirement - Single $12,950
- Earned income for the and dependent standard deduction. - earned income + $400
- Unearned income for purposes of the kiddie tax and other
References:
IRS Scholarship interaction
Topic No. 421, Scholarships
What is the Kiddie Tax?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
