rbynaker
Level 14

@TaxGuyBill wrote:

@rbynaker wrote:

Looks like taxable scholarships got moved to Schedule 1 Line 8r.


Oh, interesting. I missed that one.

It wonder if the IRS will still treat taxable scholarships as "earned income" for purposes of the Standard Deduction (it is "unearned" for other purposes). If I remember correctly, I couldn't find any legitimate reason for the IRS to treat it that way, so I wonder if they will continue to do so (but just because I don't remember finding a reason doesn't necessarily mean it doesn't exist 😂 ).


It's still there, buried in a footnote in a worksheet in the draft instructions (PDF page 33):

https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf

"Earned income . . . also includes any taxable scholarship or fellowship grant."

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