I worked a part time job and got $7000 from a scholarship but got left over $4000 after tuition . How is the unearned income taxed ?
If you only earned $7000 at a part time job in 2019, then there's no possible way on earth that you provided more than half of your own support. More than likely, your tuition alone was more than $7K for the year. So your parents qualify to claim you as a dependent on their tax return.
Now understand the key word in the IRS rules is *QUALIFY*. It flat out does not matter if your parents actually claim you as a dependent or not. They "qualify" to claim you. So while your parent's have a choice to claim you or not, *YOU* do *NOT* have a choice and must select the option for "I can be claimed on someone else's tax return".
The scholarship money that was not used for qualified education expenses, but instead refunded to you, is subject to the kiddie tax. Period. Again, it's doesn't matter if your parents actually claim you or not.
Once you have completed your tax return you will note the refunded scholarship money is included in the total on line 9 of the SCH 1 which gets transferred to line 7a of the 1040 with an annotation of "SCH" next to it.
