1. Your daughter can set up online account or use your desktop version or purchase her own.
2. The 1098-T plus other education expenses can be used on the parent's return for AOTC or Lifetime Learning. The AOTC is limited to 4 times per person so you may have already used it up. It may not be worth claiming the LLC but would be worth a comparison.
- Box 1 $4200
- Box 5 $7500
- You can claim as much of the scholarship as you want went to living expenses and add it to the income of the student.
For example:
Books $300
Tuition $4200
Total expenses $4,500
You can claim any or all of the $4500 on parents return for education expenses.
Scholarship $7500
Any expenses not claimed by parents will be subtracted from the scholarship amount.
Let's say parents claim $3,000 of college expenses. Then student claims $7,500 - $3,000 = $4,500 as income.
Reference:
Available Education Credits
IRS Q & A about education credits
Tax Benefits for Education: Information Center| IRS
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