The Unofficial SMART Scholarship Forum

Note instructions in the forms 8615 for 2018 and 2019 are not clear and the "Tentative Tax Based on the Tax Rate of Your Parent Worksheet" line 4 tax should be calculated using Schedule D Tax Worksheet if the parents used that worksheet to calculate their taxes. This should result in a lower tax. Al...

For those of you who filed IRS Form 8615 for 2018 and 2019 and were socked with the exorbitant Estate and Trust tax rate table, the Taxpayer Certainty and Disaster Tax Relief Act of 2019 RETROACTIVELY changed the rules so you can pay the tax at your parents marginal tax rate. To take advantage of th...

There are 3 steps. 1) Enter the 1099 income so the 1099 doesn't fail the IRS matching program, but since this is in box 3 it is reported as miscellaneous income and in the wrong place 2) Correct the "bad" entry by reentering as a negative miscellaneous income to remove the income from the total. 3) ...

wait so if we are in our first year of the scholarship meaning we have only been receiving payments since august... do we owe money by January 15? thanks for the help! Yes you generally need to pay quarterly and the last quarter is due January 15th but you may be able to just pay when filing your t...

As for Kiddie tax, I still don't understand how you're filing out the forms, I'm under 23 with no other income and I'm able to claim independence/not subject to kiddie tax without doing anything special. If you claim to be independent then the software won't subject you to the kiddie tax, however, ...

It also asks "Did you perform any service to earn the money paid to you?" If you check yes, this will trigger self employment taxes. Generally the consensus has been that this should be no. However, if no, then it should be reported as a taxable scholarship, this may trigger the "kiddie tax" if you...

Support — I’ve had internships with private companies that bumped me above. My accountant also told me my stipend for sure counts towards independence. I have received scholarship money from my school though that was refunded directly to me so that doesn’t count and will be taxed differently, but t...

Please let us know how it works out! I feel that the stipend shouldn't be counted as scholarship income since it is not necessarily to go towards school (It's supposed to go towards living). While it is a stipend and SMART stated that it is not in exchange for work -- I still don't see why it'd be ...

What is the "living stipend" counted as? That is the big question. A recap from the previous thread (including one of your posts): It's 1099MISC income. That means it's not a scholarship and it's not earned income. No self employment tax. No qualifying for earned income credit. Taxed at whatever rat...

Started a 2017 thread on this topic last year but things look like they change for the 2018 tax year. There may be new wrinkle that makes the kiddie tax even worse! I hope I am wrong, but what pieces I have been able to find are the following. However I have not been able to find any IRS documents u...

I think you're interpreting it correctly, but I would most definitely consult a tax professional before making any final decisions. This is my first year with the scholarship, and plan to file as an independent because my parent did not provide 50% of my income this year. I would also make sure you...

SMART income - "You are considered an independent contractor, and not self-employed, and are not employed by either the United States Government or ASEE." Here's info on the kiddie tax stuff too from the irs https://www.irs.gov/taxtopics/tc553.htmlhttps://www.irs.gov/taxtopics/tc553.html Your child...

Above is my post, guess I wasn't properly logged in when posting.

New to this SMART Scholarship and am investigating the tax implications to the student. Is the stipend treated as taxable portion of a scholarship or as income? If scholarship, is it then subject to the "kiddie tax" where the student is taxed at the parents higher tax rate? If scholarship, I underst...