Just to clarify .....
My daughter has 19K in unearned taxable income from a scholarship after tuition payments. This goes toward her room and board. This is on a 1098-T not a W-2. Since she is a full time student under 24 yrs she is subject to the "kiddie tax" - i.e., taxable income is charged at the parent's tax rate. She is independent, lives in another city. Is there no way to reduce her tax burden? It seems unfair that daughter has to pay higher taxes through no fault of her own. :( I thought IRA contributions on taxable scholarship were allowed (she is an undergrad) - atleast that is what I thought last year, 2022 while filing 2021 taxes.
