37% Income Tax Rate on Basketball Scholarships?

[Rocky Mountain Shock]

I wonder if a creative and clever tax attorney can argue either:

• a scholarship is not unearned income but in fact a gift (surely this has been tried before), or
• because the benefit the child receives from the education is greater income potential that will be taxed at their own individual rate, the scholarship should also be taxed at their own individual rate

[Kung Wu]

Creative .. I like it!