My daughter received a scholarship that was not reported on the 1098-T that the university mailed to us. The scholarship check was mailed directly to us and had no limitations on what it could be used for. We received a 1098-MISC for this scholarship.
My daughter has additional scholarships that were reported on the 1098-T form. These scholarships exceeded the tuition expenses. My understanding is that the overage is considered earned income until the standard deduction is met,
The difference between tuition expenses and the total amount of scholarships is well below the standard deduction. ...but after reviewing the printed forms Turbo tax is treating the 1098-MISC reported scholarship as unearned income when determining the standard deduction. (Standard Deduction Worksheet for Deductions, Line 1)
Should the scholarship reported on the 1098-MISC be treated as earned-income or unearned income with respect to the standard deduction calculation?
