Where do I report my child's taxable scholarship or grant income?
Don't report your child's taxable scholarship or grant income on your tax return.
If your child needs to file a tax return, they must report the scholarship or grant income on their own tax return. A child only needs to file if their total income with the taxable scholarship income meets the filing requirement. See Chart B from the Form 1040 instructions.
Note: When a child is required to file, their tax rate is generally lower than the parent's rate.
Example: You allocate $2,000 of your child's Pell Grant to room and board in order to maximize the education credit on your tax return. That $2,000 becomes taxable scholarship or grant income on your child's returnnot yours. If your child has no other income, they would not need to file a tax return because the $2,000 is below the filing threshold.
Keep a written record of how you allocated the scholarship or grant with your tax returns.
If your child needs to file a tax return, they must report the scholarship or grant income on their own tax return. A child only needs to file if their total income with the taxable scholarship income meets the filing requirement. See Chart B from the Form 1040 instructions.
Note: When a child is required to file, their tax rate is generally lower than the parent's rate.
Example: You allocate $2,000 of your child's Pell Grant to room and board in order to maximize the education credit on your tax return. That $2,000 becomes taxable scholarship or grant income on your child's returnnot yours. If your child has no other income, they would not need to file a tax return because the $2,000 is below the filing threshold.
Keep a written record of how you allocated the scholarship or grant with your tax returns.
