Hal_Al
Level 15

Education

$4500 of taxable scholarship (fasfa refund) does not change your dependent status. 

 

Q. So that would fall under unearned?

A. No. Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $14,600 filing requirement (2024) and the dependent standard deduction calculation (earned income + $450 .  It is not earned income for the kiddie tax and other purposes (e.g. EIC).  For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.

 

Q. Would that fall under kiddie still?

A. It would not "fall under" kiddie tax until your total income  reached $14,600. 

 

Q. Or will I still have to pay as a dependent?

A. If you  can be claimed as a dependent, you will be taxed as a dependent, whether somebody actually claims you or not. Nothing you described provides a reason for your parents not to claim you as a dependent.  If that $4500 is your only income, you are not even required to file a tax return.