Going through steps, it stated my daughter would need to file income of $1071 from a 1098T. How do I know if this will be necessary as I helped my daughter complete hers

[SeanE1 · Accepted solution]

If your daughter received a 1098-T with the amount of scholarship in Box 5 greater than the amount received or billed in Box 1 or Box 2, the IRS views the excess as taxable income.  Your daughter will create her own tax return including the 1098-T and probably not owe any taxes depending on whether she has any other forms of income.