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Education
Taxable scholarship income gets special treatment. It is earned income for purposes of the dependent filing requirement and calculation of the dependent's standard deduction (earned income + $350 but no more than $12,400). That's why it goes on line 1 of form 1040, but with the notation SCH.
It is unearned income for purposes of the "kiddie tax", earned income credit or eligibility for an IRA contribution.
March 8, 2021
6:49 PM