Tax Question--1099 MISC Box 3, Other Income, Summer Research Stipend

[CT1417]

@mommdc

They must be treating the $4,400 as unearned income.

($1,200+4,400=$5,600 minus standard deduction which they must have calculated as $1,550 ($1,200+$350), so that would be $4,050.

That is then taxed at 10%

What tax chart do you think TT is using? The single one where 10% tax is due on the first $9700 of income?

1. The software appears to have gone at this from two different approaches. Form 8615 Worksheet shows $4400 less $2200 calculation that @BelknapPoint outlined in post # 15 above.
2. And then, Standard Deduction Worksheet for Dependents, 1040 where it adds $350 to earned income, then lists the $12,200 single deduction, and concludes by choosing the smaller, or $350 +$1200 earned income. $405 then appears on the Tax Summary form.