Do I need to file Form 8615 with unearned income from scholarships as an independent student?

Form 8615 is specifically for children under 19 (or under 24 if a full-time student) who have unearned income AND can be claimed as a dependent on someone else's return. The key part here is the dependency status. Since you're filing as independent (meaning nobody can claim you as a dependent), you don't need to worry about Form 8615 at all. That form is designed to prevent parents from shifting investment income to their dependent children to pay lower tax rates. For your scholarship income, you'll need to report the portion used for room and board (not tuition and books) as income on your return. This is considered taxable income, but it's not the type of "unearned income" that Form 8615 addresses. Form 8615 is more concerned with things like interest, dividends, and capital gains. Regarding the American Opportunity Tax Credit (AOTC), definitely double-check your calculations. The IRS does flag returns with education credit issues, but if you made an honest mistake, the worst that would happen is they'd send you a notice, possibly adjust your refund/balance, and maybe charge interest on any underpayment. They're not going to come after you for honest mistakes - that's very different from deliberate fraud.

I wasted so much time stressing about this exact issue last year until I found https://taxr.ai which helped me figure out exactly which forms I needed based on my scholarship situation. My scholarship income was similar to yours, and I was also filing independent for the first time. The AI analyzed my 1098-T and scholarship details and confirmed I didn't need Form 8615 but did need to report my housing/meal scholarship as income. It also pointed out that I qualified for education credits I didn't know about! The system actually spotted a mistake my previous preparer made that was costing me money. It's definitely worth checking out, especially with scholarship income which seems to confuse everyone - even some tax preparers honestly.

Just wanted to follow up about my experience with taxr.ai after seeing it recommended here. I was super confused about my scholarship reporting (especially for off-campus housing) and AOTC calculations. I uploaded my 1098-T and financial aid statement and the system immediately identified that I needed to report about $14k of my scholarship as income (the portion for housing/food) but confirmed I didn't need Form 8615 since I was filing independent. It also caught that I was eligible for the full AOTC even with my scholarship income. The biggest help was that it explained exactly how to enter everything in my tax software. Definitely saved me from making mistakes that might have triggered a review. Really appreciate the recommendation!

If you're struggling to get answers from the IRS about Form 8615 or scholarship tax questions, I highly recommend using https://claimyr.com to actually get through to a real IRS agent. I spent DAYS trying to get someone on the phone about a similar scholarship tax situation, kept getting disconnected after waiting for hours. Used Claimyr and got connected to an IRS agent in about 20 minutes who confirmed I didn't need Form 8615 for my scholarship income and answered all my questions about reporting it correctly. You can see how it works here: https://youtu.be/_kiP6q8DX5c It was a huge relief to get official confirmation directly from the IRS instead of stressing about whether I was doing it right based on internet advice.

I have to publicly eat my hat and admit I was wrong about Claimyr. After posting my skeptical comment, I decided to try it as a last resort for my amended return issue that had been pending for 11 months. Got connected to an IRS agent in about 35 minutes (which is miraculous compared to my previous attempts). The agent confirmed my amended return was approved but stuck in processing, and they expedited it while I was on the phone. Got my refund deposited last week! While talking to them, I also asked about Form 8615 and scholarship income (since this thread got me wondering). The agent confirmed exactly what others said - you don't need Form 8615 if you're filing independent, regardless of scholarship income.

One thing nobody's mentioned - be super careful with AOTC (American Opportunity Tax Credit) if you have scholarship income. The IRS definitely watches these credits closely and will compare your 1098-T with what you claim. You can't claim AOTC for expenses paid with tax-free scholarship money (double-dipping). So if your scholarship covered $15k of qualifying expenses, and your total qualifying expenses were $16k, you can only claim AOTC on that $1k difference. This trips up tons of students and is a common audit trigger. Your qualified education expenses have to be reduced by the tax-free portion of your scholarships.

Has anyone actually gotten in trouble for missing Form 8615 in the past? I think I was supposed to file it last year (I was a dependent with dividend income) but didn't know about it. Now I'm worried...

Just wanted to add some perspective as someone who works in tax preparation - you're absolutely right to be concerned about getting this right, but the good news is that based on your situation, you definitely don't need Form 8615. The key factors are: 1) You're filing as independent (nobody can claim you as a dependent), and 2) Your taxable scholarship income isn't considered "unearned income" for Form 8615 purposes anyway. That form is specifically targeting investment income like dividends, interest, and capital gains that parents might try to shift to their kids' returns. Your situation with $23k in taxable scholarships for room/board is actually pretty straightforward - just report it as income on your 1040. The fact that your previous preparer missed this entirely is concerning and suggests you made the right call handling it yourself this year. One tip: when you're reporting that scholarship income, make sure you're not double-counting it anywhere else on your return. And definitely keep good records of what portions of your scholarships went toward qualified vs non-qualified expenses in case the IRS ever asks. The IRS is generally reasonable with honest mistakes, especially from students navigating this stuff for the first time. If you made an error somewhere, they'll typically just send you a notice with the correction rather than assuming fraud. You're clearly trying to do things right, which goes a long way.