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Subject:  Scholarships & SE Tax Date:  4/15/2013  1:20 AM
Author:  wolfienola Number:  118438 of 132711

My son wanted to do his own taxes this year - he gets a full scholarship for college, and has a few hundred $$ of dividend income as well. I have used Turbo Tax Premier to do his taxes in the past due to the dividends. So he used that product as well, but for the first time, it charged him Self Employment tax on his scholarship. (the scholarship covers room and board, but only tuition is allowed as an education expense, so he pays income tax on the difference) It never charged SE Tax when I did his taxes for him his first 2 years of college.

Does anybody know if this could be a bug in Turbo Tax, or whether any of the tax changes this year included a new ruling on Self Employment Tax on Scholarships?
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