Thank you for all the great info on this topic.
I'm still struggling to understand the kiddie tax and AOC ramifications of scholarship $ in excess of tuition and "qualified expenses".
Could you please clarify the loophole for claiming the AOC if dependent has scholarship that exceeds tuition? My 19-year old's T-1098:
Box 1 $59,500 qualified tuition and related expenses Box 5 $81,000 scholarships
(also has about $3500 other qualified expenses, leaving about 18K unearned income ? )
I have heard other parents claim the AOC in our situation, but I can't see how the loophole might apply in our case?
Thanks for any additional info or guidance anyone can provide. I guess I should go to a CPA, but I would like to understand for myself.
