Good point! Thanks. Of course any earned income from jobs would push more of the scholarship into the kiddie tax stratosphere. I've just written to my congressperson to ask if she could introduce legislation to have taxable scholarship and grant income treated uniformly as earned income. The kiddie tax was designed to keep parents from shifting some of their own income to their children in order to get it taxed at a lower rate. This has had unintended consequences for education.
