Thanks for persevering with me @mommdc!
If you can bear it…I am still a bit confused.
“If you treat the stipend (he was doing research at a university but wasn’t paid W2 wages and got the stipend to help pay living expenses) as a taxable scholarship, then it is treated as earned income for purpose of determining standard deduction and unearned income for purpose of figuring kiddie tax.”
The same compensation is treated as both earned & unearned income? Does that mean the kiddie tax would come into play? If so, that may explain what TT has done, although I still don’t understand why the tax bill is $405 on a $4050 taxable earnings (or non-earnings).
Are taxable scholarships considered both earned and unearned income???
His stipend was reported in box 3 instead of box 7. I do not know the distinction, but parents on the old 2014 CC thread were trying to have stipends restated as box 3.