Both statements can be true. Your excess scholarship is taxable. But, if your total amount of income is less than !2,200, then, you will owe no tax. In fact if the total is less than $12,200*, your student dependent does not need to file a tax return.
*The $12,200 is not a "hard number". You do not report your dependent's income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2019 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,200.
- Unearned income (interest, dividends, capital gains) of more than $1100.
- Unearned income over $350 and gross income of more than $1100
- Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12.200 if under age 18)
- Other self employment income over $400, including box 7 of a 1099-MISC
