My daughter was a freshman in college last year and was awarded a scholorship that covered 90% of her tuition. Why is it saying that her scholorship counts as income and she needs to fil out a W2 and report 14,000 as taxable income. This is confusing. The scholorship paid for room and board, books, and other fees. My out of pocket expense was her meal plan.
See this TurboTax support FAQ for information on why scholarships may be taxable income - https://ttlc.intuit.com/community/college-and-education/help/why-is-my-scholarship-taxable/01/26267
So, how does this work? How can this be written off? I've got friends who's kid got the same amount and they did not have to complete a W2 for the child and it was not counted as income for them.
See the answer provided by @Texas Roger here - https://ttlc.intuit.com/community/college-education/discussion/questions-about-scholarships-and-taxes/00/832153
Also see this TurboTax Tax Tip - https://turbotax.intuit.com/tax-tips/college-and-education/taxes-for-grads-do-scholarships-count-as-taxable-income/L2hWn0lpe