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Education
Thank you, this is very helpful. I am not sure about the following however:
"Your student must report $6038 (9671 - 3633 = 6038) as taxable scholarship income. You want to report scholarship as taxable income, not the 529 plan distribution, because: 1. Taxable 529 earnings are investment income and subject to the "kiddie tax" and 2. taxable scholarship is treated as earned income, for purposes of the standard deduction calculation. "
This scholarship is for tuition. My understanding from IRS guidelines are that scholarships for tuition are not taxable. Can I just go and decide it is taxable? The scholarship is from the State of Georgia Hope/Zell Miller program that, in my daughter's case, covers full tuition The amount is exactly equal to the tuition charge at her school.
Thank you!