Q. Taxable scholarship goes on the student's tax return, even if the student lives at home and is a dependent on parent's return?
A. Yes.
A person's income (with one minor exception*) never goes on another person's tax return.
*If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on the parent's return, using form 8814. Form 8814 essentially acts as the dependent's separate return, just filed as an attachment to the parent's return.
