Now that our daughter is home, we're trying to finish up her taxes and put this advice into use. But the process has turned up additional questions.
The link about stipend information mentioned that perhaps it won't be the full amount taxed. What goes toward educational costs are not taxed, but what helps defray living expenses does.
Stipend $1500
Tuition & allowable fees: $971.96
Boarding charges: $1440 (stayed on campus)
So do we only report $528.04? ($1500-$971.96) These educational costs were included in her 1098T, so I wasn't sure if deducting them from the stipend reported was double counting it.
I noticed that recording the stipend amount in the manner instructed, meant that TurboTax considered it Unearned Income taxed at our tax rate because of her age and being our dependent.
Thank you!
