rbynaker
Level 14
12-02-2022
05:44 PM
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@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."