TurboTax is directing you to the “Child’s Income” section because you meet the IRS criteria for Form 8615 (kiddie tax). The kiddie tax applies if: You can be claimed as a dependent, You are under ...
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TurboTax is directing you to the “Child’s Income” section because you meet the IRS criteria for Form 8615 (kiddie tax). The kiddie tax applies if: You can be claimed as a dependent, You are under 24 and a full-time student (or under 18), You have more than the threshold amount of unearned income, And you do not provide more than half of your own support. In that case, you must complete Form 8615 on your own return, and your unearned income may be taxed at your parents’ rate.
[Edited 03/08/26 | 7:07am PST]
I agree that this is a taxable scholarship that qualifies as unearned income, not subject to self-employment tax. You definitely want Form 8615 attached to your return. These are the requirements:
Who Must File
Form 8615 must be filed for any child who meets all of the following conditions.
1. The child had more than $2,700 of unearned income.
2. The child is required to file a tax return.
3. The child either:
a. Was under age 18 at the end of 2025,
b. Was age 18 at the end of 2025 and didn’t have earned income that was more than half of the child's support, or
c. Was a full-time student at least age 19 and under age 24 at the end of 2025 and didn’t have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.)
4. At least one of the child's parents was alive at the end of 2025.
5. The child doesn’t file a joint return for 2025.