@KBSC said "Daughter ..... filing her own tax return as she has earned income, dividends, and 1099Q."
What are the numbers? Having her declare some of the scholarship taxable (assuming the scholarship is not restricted to tuition) may wipe out some of the tax (but not the penalty) on the 1099-Q.
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).
