1098-T: Whose return does it go to once education credits are used up?

[nancydave590]

A clarification question: As parents, we claimed our daughter and for the last four years, we have included her 1098-T on our return (hopefully this was the correct thing to do). The 2019 1098-T she received covers her spring semester prior to graduation in 2019. We have already used up our four years of education tax credits so TurboTax says we don't qualify for another credit this year. However, on her 1098-T, box 5 is more than box 1 -- so whose return does that go on? Our daughter's return? Or ours?

[SusanY1]

When Box 5 is greater than Box 1, indicating taxable scholarship income, Form 1098-T goes on the student's return.

However, just because Box 5 is greater, this doesn't guarantee there is a taxable scholarship.  

Often all of the qualifying expenses that were covered by scholarship do not show on the 1098-T.

If this is the case for your daughter, and you are certain there is no taxable scholarship to report, the form isn't required to be reported on any tax return at all.  

The scholarship is only taxable if a portion was used for nonqualified expenses such as room and board or if it was tied to a work requirement such as a teaching or research fellowship.