I just saw an article on cnbc posted about scholarships and when they are taxable and when they are not. Then, it said that if the parents claim the student as a dependent, the taxable scholarship is reported on the parents’ return, not the student return. Is this true??
Here is the link. I think this article was reposted from last year. You can see the part where they say taxable portion of sch for dependent student goes on parent return. If true, too late for us. Just filed w it being reported on DS return.
@BelknapPoint can clarify.
But I believe scholarships in excess of QEE are reported on the kid’s tax return in most cases.
I think only interest and dividend income of a child (up to a certain number) can be reported on a parent tax return.
“Who’s ultimately responsible for reporting the tax load? For dependent students, Mom and Dad would report the scholarships on their return.”
Yeah, that’s wrong. A taxable scholarship is income to the student, and is reported on the student’s return (if the student is even required to file a return). As far as I know, the only child income that a parent may elect to include on the parent’s return is interest and dividends.
https://www.irs.gov/taxtopics/tc553
Look at number 2.
Phew. Thanks for clarifying. Just had a fleeting moment of panic.
The article linked in post #1 has been corrected.
“Who’s ultimately responsible for reporting the tax load? Students report it on their own returns.”