Can you comment on how adding taxable scholarship income to a child's return would affect the premium tax credit on my return?
Here's what I know, and it may not be all inclusive.
First, I assume you have a college student that qualifies as your dependent, and you are "in fact" claiming them as your dependent on your tax return, as you should.
I assume that the total amount of scholarships, grants and any 529 distributions received in 2019, exceed the qualified education expenses paid with that income received from a 3rd party source.
If my assumptions are correct, then you the parent's will still claim the student as your dependent, and you the parents will *NOT* report one single thing concerning education on your tax return.
The student will report all the education stuff on the student's own return *IF REQUIRED*. It is required for the student to do this *IF* the total of the student's earned income (W-2, 1099-MISC, self-employed) plus the student's investment income (1099-INT, 1099-DIV, etc) plus the students taxable portion of all scholarships, grants, 529 distributions exceeds $12,300.
It is also required if the student's investment income alone exceeds $1,050.
So my first question to you is, is the student required to file a tax return?
