Hal_Al
Level 15

Education

Yes, that all appears correct.

 

Your bottom line is: the $8113, taxable scholarship,  should show up on line 8r of Schedule1*. 

 

Q. where can we verify "Amount used to claim the tuition deduction or credit" box is 0? Which form is it on?

A. Line 17 of the Student info worksheet.  If you're getting $8113 as taxable scholarship, 0 was used for that amount (and it's no longer important).

 

*It's important that it be reported there, as scholarship,  and not as "other income". 

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $12,950 filing requirement and the dependent standard deduction calculation (earned income + $400).  It is not earned income for the kiddie tax and other purposes (EIC. IRA contributions ).  With the full $12,950 standard deduction, very little will be subject to the kiddie tax.  It will be taxable on the state return.