Does my daughter have to pay tax on a tuition waiver for University if she works for it?

My daughter is going to University for her Masters has been given her a 1098T. She has tuition waiver for work for them. When she fills out her taxes on turbo tax, she has to pay tax on this ? and it is not waived. Is this correct? She entered the form into Turbo Tax and it is making her pay taxes on the scholarship.

posted

Yes, she does, unfortunately. If the total scholarship she receives exceeds her qualified education expenses including the tuition, supplies, and books, she will have to pay taxes on the difference ( Scholarship - Expenses=taxable amount).