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Education
He will not be subject to the kiddie tax. i.e. he will not have to file form 8615,
Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $12,400 filing requirement and the dependent standard deduction calculation (earned income + $350) and the kiddie tax. It is not earned income for other purposes (EIC. IRA contributions or additional child tax credit).
Side issue:
"I’m...ineligible for any education credits due to income".
"I did put the 1098T on my returns and did get some dollars back"
Those two statements don't jive.
February 22, 2021
7:05 AM