NMF Scholarship and taxes

Longhaul
Wed, 26 Feb 2014 18:59:44 +0000

The entire purpose of the Form 8615 changed from “Tax for children with INVESTMENT INCOME” to “tax of UNEARNED Income”

The 2013 Form 8615 language specifies scholarships as being unearned. This is the first year with that specification and it was not published until December 2013. http://www.irs.gov/pub/irs-pdf/i8615.pdf Prior the Form 8615 was only for Investment Income. here is the 2012 instructions http://www.irs.gov/pub/irs-prior/i8615--2012.pdf. It is a very clear change.

The whole thing makes my head spin.