A million thanks for going the distance with me.
One quick follow-up: In the correct 2024 equation (A) where child taxable income = $316, I thought that any amount of taxable income (above dependent deduction but below individual standard deduction) meant that the taxable scholarship then had to be treated as unearned income. Definitely not true? Only if the resulting taxable income is > $2,500 does kiddie tax kick in with taxable scholarship seen as unearned income?
So in this case, the $316 results in no kiddie tax and $0 federal tax (and tiny state tax)?
