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vvk4
Level 2

Tax for children - Unearned income

My son received scholarship money from his University. He also received 1099 NEC for work done in summer 2024. When I am filing taxes thro turbo Tax, his scholarship money is being treated as "Tax for Certain Children Who Have Unearned Income" Form 8615 which increased his tax liability by about $250. Anything I can do?

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Tax for children - Unearned income

Qualified scholarships and fellowships received by a degree candidate and used for tuition, fees, books, supplies, and equipment that are required for the course by the educational institution are excluded from income.  if not exclidable, they are unearned income for purposes of the kiddie tax.

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