Hello TT,
I have a 19-yr old freshman who started college in 2023 and received a scholarship, that covers more than the qualified education expenses (tuition, fees etc.) So the "extra" amount of scholarship as I understand is considered "unearned income" and subject to kiddie tax. I claim my child as a dependent on my return, and going to file his 1040 tax return separately (first time tax filer).
He has received form 1098-T from the Univ. He has Zero earned income (no W-2).
My questions:
1. Where is the scholarship portion of the unearned income entered in TT (or is it automatically determined from the difference of (Box 5 - Box 1) on 1098T?
2. The "extra" scholarship amount is > $2500 - hence a separate tax return is required. However, this unearned income is less than $13,850 (standard 2023 deduction, single) - does this mean there is no tax owed, because the AGI is less than $13,850? Or am I mis-interpreting?
3. Does he need to fill Form 8615, and provide parents AGI and tax related info? Is there any kiddie tax owed?
Thanks for help.
HR67
