KrisD15
Expert Alumni

Education

It is a grey area. 

 

For example, if the scholarship income is 2,000 it is not considered as unearned and the dependent does not meet the filing requirement based only on that income. 

The income can adjust the Earned Income Credit, if the student is eligible for the credit. 

The income is not subject to Self-Employment tax.  

 

This is one of the many areas where there are exceptions to the rules. 

 

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