Nielse & Hopkins, The kiddie tax and unearned income from scholarships

With the increasing numbers of students attending colleges and university and the rising cost of higher education, many students hope to receive some form of scholarship to pay a portion or all of their tuition. An article written by Nielse & Hopkins explains how some scholarships could be considered taxable income to the student. With the signing of the Tax Cuts and Jobs Act (TCJA) into law in 2017, this income – which is governed by “kiddie tax” regulations – is taxed at estate and trust tax rates. Such rates can quickly climb to as much as 37%.

Download the full article by clicking Nielse & Hopkins, The kiddie tax and unearned income from scholarships.

Posted by Jessica Zhang, Associate Editor, Wealth Strategies Journal.

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