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Education
Thanks,
My full question did not post - reposting. My daughter gets scholarship for tuition & living expenses -1098T shows exact tuition amount. After tuition, books/computer expenses and standard deduction the remaining is her taxable income. This income is taxed at parent's tax rate, generally higher than what the actual income tax bracket is, due to "kiddie-tax". However, I thought that of the first $2200 of this taxable income subject to "kiddie-tax"- $1100 was not taxed, remaining $1100 was taxed at 10% and the amount greater than $2200 was taxed at the parent tax rate. However, TurboTax calculates the tax on the full taxable income at the parent's tax bracket rate which can be a fairly significant difference. Is this correct?
‎April 14, 2022
6:39 AM