NMF Scholarship and taxes

lisa6191
Wed, 26 Feb 2014 15:53:44 +0000

I’m going to wait a bit before I file to see what Turbo Tax does. From the research I did last night, it looks like different IRS publications say different things about it, and so far Turbo Tax has taken the position that it’s still earned income (despite the language in the instructions for form 8615). If it remains debatable, I might take my chances and do it Turbo Tax’s way - they have a guarantee, so if it’s wrong they will have to pay the penalties anyway. And doing it on form 8615 actually nearly quadruples what we owe. I’m still researching though.