Does turbo tax know if i have taxable scholarship income?

Forum|Forum|4 years ago
May 3, 2021
1 reply
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i entered my taxable scholarship income, yet turbotax did not do the kiddie tax calculation. it did not give me the standard deduction of $1100 for a dependent (i am a dependant on my parents taxes). it gave me the full amount of my scholarship as my sd.

TurboTax Deluxe Online

Hal_Al

Employee

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $12,400 filing requirement and the dependent standard deduction calculation (earned income + $350).. It is not earned income for the kiddie tax and other purposes (EIC. IRA contributions or additional child tax credit).

Taxable scholarship goes on line 1 of form 1040 with wage earned income, with the notation SCH, to the left of line 1. TT can handle the dual treatment of the income.

So, it's sounds like TurboTax has done it correctly. Since your total scholarship (and total income) was less that the $12,400 maximum standard deduction, there is no kiddie tax to calculate.