No. But, it can be.
The general rule is that you may only claim expenses that were not paid by tax free scholarship. In fact, with numbers you have; you get no education credit and your dependent student must report $895 of taxable income (8295-6900-500=895) on her return.
However, there is a tax “loophole”
available. The student reports ALL her scholarship, as income on her return. That way, the
parents can claim the tuition credit on their return. They can do this because
that much tuition was no longer paid by "tax free" scholarship.
You cannot do this if the school’s billing statement specifically shows the
scholarships being applied to tuition or if the conditions of the grant are
that it be used to pay for qualified expenses.
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