My child does not work and it is telling me that she needs to file a tax return for Education Assistance Counts as Income does she need to file?

[SeanE1]

If your daughter received a 1098-T from her college or university, and the amount of scholarship if any, in Box 5 is greater than the amount of qualified educational expenses either received, (Box 1) or billed, (Box 2) she will have to include that 1098-T on her tax return.  The reason for this is that the IRS views the excess as taxable income.