Thank you for that reply.
Other than getting the college to issue a w2 or 1099 in place of the 1098-T (which they have flat out said they will not do, I'm guessing because that would involve payroll/medicare/other employment related tax obligations on their end), is there any other way to get the stipend classified as "earned income"? Is there any truth to the internet article that claimed some athletes were able to treat their athletic scholarships as earned income because the money is predicated on them playing sports and if they stop the sport (due to injury or whatever), they lose the scholarship? My daughter is basically in the same position with the lab research requirement so if that is a possible approach, I feel it is worth exploring. I'm guessing she's basically out of luck because the college does have a whole web page warning students about the kiddie tax so they are aware of it and if there was any way around it, I'm guessing they'd suggest it, but I figured it can't hurt to ask. This just seems awfully unfair to young grad students and not at all what the kiddie tax was designed for.
