Discussion:Taxable Scholarships/Grants
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| Revision as of 02:43, 10 October 2009 R2 (Talk | contribs) (Believe that a t) ← Previous diff |
Current revision Seaside CPA (Talk | contribs) (Thanks everyone!) |
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| {{ForumReplyPost|UserID=R2|Date=10 October 2009|Text=Believe that a taxable scholarship would not be earned income for Alt Min purposes unless services were actually rendered for the amount received.}} | {{ForumReplyPost|UserID=R2|Date=10 October 2009|Text=Believe that a taxable scholarship would not be earned income for Alt Min purposes unless services were actually rendered for the amount received.}} | ||
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| + | {{ForumReplyPost|UserID=Seaside CPA|Date=10 October 2009|Text=Thanks everyone! Dan, I did include books, supplies, etc. as "qualified" education expenses & there will still be taxable income. R2, I agree it would not be earned income for Alt Min purposes. Fortunately in this case, since this would be considered child's income, child is not required to file due to amount of "earned" income.}} | ||
Current revision
Discussion Forum Index --> Basic Tax Questions --> Taxable Scholarships/Grants
Discussion Forum Index --> Tax Questions --> Taxable Scholarships/Grants
Seaside CPA (talk|edits) said: | 9 October 2009 |
| I know if the total scholarships/grants exceed qualified education expenses, the difference is taxable income. I am assuming this would be taxable to the child, not the parents. Correct? I also know if reported, it would be reported on line 7 of 1040 with SCH written beside it. My other question is trying to decide if the child needs to even file - would this be considered earned income or unearned income. My thought is unearned income, however the fact that I am reporting it on line 7 as wages makes me question it. Can anyone point me in the right direction on this? Thanks for the help! | |
Seaside CPA (talk|edits) said: | 9 October 2009 |
| OK - I did find where taxable scholarships and grants are considered "earned" income. So am I correct in that it is income to the child (& not the parent)? | |
| 9 October 2009 | |
| As far as I know it would be the childs income. In addition to qualified educational expenses, for the Education Credits, you may factor in course materials, books, supplies, etc. before determining what amount is taxable. | |
| 10 October 2009 | |
| Believe that a taxable scholarship would not be earned income for Alt Min purposes unless services were actually rendered for the amount received. | |
Seaside CPA (talk|edits) said: | 10 October 2009 |
| Thanks everyone! Dan, I did include books, supplies, etc. as "qualified" education expenses & there will still be taxable income. R2, I agree it would not be earned income for Alt Min purposes. Fortunately in this case, since this would be considered child's income, child is not required to file due to amount of "earned" income. | |
