Will my dependent daughter need to file a tax return for money exceeding tuition expenses from a 1098-T? Where does she enter the info since I claim her? She has no W2.

[tdavis6561]

I have already filed my taxes and claimed the 1098-T on my return.  A message on TT stated that she would need to file a tax return to report the taxable income.  She is 19 years of age and does not work and relies on me for support.  Where would she report this income on a tax return?

[Hal_Al · Accepted solution]

If the total amount she needs to report is less than $6350, she does not need to report it or even file a tax return. That is because she has no other income and $6350 is the filing threshhold

Excess scholarship* goes on line 1 of form 1040EZ (line 7 of 1040 or 1040A) with the notation SCH. Entering it in TurboTax is a little tricky**. 

*Excess scholarship is the amount exceeding qualified expenses (tuition, fees, books and other course materials, including computers). Basically scholarships that cover room & board are taxable.

** There are several workarounds for entering, depending on whether you are using online or download software. Reply back if you need instructions