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April 4, 2022
Question

I'm a FT student under age 24 and am being rated at my parent's tax rate. My unearned income is from scholarships which IRS Form 8615 says does not count as support. Why?

  • April 4, 2022
  • 1 reply
  • 0 views
I'm a full time college student under the age of 24. Turbotax seems to want to determine my tax rate to be based off my parent's rate due to Form 8615. However, IRS Form 8615 states that scholarships are not considered "Support" if the student is full time (I am). I should be taxed at my own rate based on my total income (which is far less than my parents). I'm unsure how to get Turbotax to realize Form 8615 does not apply to me?

1 reply

Employee
April 4, 2022

You are conflating two different issues. Scholarship income is not considered as support when deciding the issue of dependency. However scholarship income is your unearned income and as such is subject to the Kiddie tax and thus the need for Form 8615.