My client has excess scholarships above qualified expenses. when I try to enter that in the miscellaneous income screen I get an critical diagnostic asking for parents information. From my understanding it adds to earned income and should be reported on the line for the W-2
For some weird reason the IRS says that for purposes of the Standard Deduction that taxable scholarships can be considered as Earned Income. But for the Kiddie Tax (and pretty much everything else), it is Unearned Income.
For some weird reason the IRS says that for purposes of the Standard Deduction that taxable scholarships can be considered as Earned Income. But for the Kiddie Tax (and pretty much everything else), it is Unearned Income.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.
