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Level 2
January 25, 2026
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Taxable scholarship and dependency question

  • January 25, 2026
  • 1 reply
  • 108 views

My daughter received $16k in scholarships which covered all of her school expenses (tuition and room/board.) The scholarships were a mixture of Pell grants and an off campus scholarship from her job in her home state that could be used for any education expenses. In order to claim an education deduction she needs to claim $10k of the $16k as taxable income. Since she is now claiming that as income is that taxable scholarship now considered her providing her own support? Or can I still claim her as my dependent even with her claiming $10k as taxable scholarship income? She lives at home during the summer and during winter vacations. 

Best answer by MaryK4

Scholarships are specifically EXCLUDED when determining whether a child provided more than half of their own support, so you do not have to include it when determining if she qualifies as your dependent.  (See Scholarships IRS Publication 501)

1 reply

MaryK4
MaryK4Answer
Level 15
January 27, 2026

Scholarships are specifically EXCLUDED when determining whether a child provided more than half of their own support, so you do not have to include it when determining if she qualifies as your dependent.  (See Scholarships IRS Publication 501)

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