AmyC
Expert Alumni

Deductions & credits

1. No return is required in MI due to the income level. MI-1040 Book

2. Yes, you can apply the expenses to the other college so it is not taxable.

3. Scholarship income is a hybrid income and can trigger the kiddie tax when she files. What is the Kiddie Tax? 

  • 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  dependent standard deduction is earned income + $400 
  • Unearned income for purposes of the kiddie tax and other 

 

 

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