My daughter (21 yrs old) is my dependent, is a Colorado resident, is a full time college student at an Alabama state university, and is under a full ride athletic scholarship. Her 1098-T indicates a $19K scholarship (block 5) and qualified tuition/expenses of $8K (block 2); thus leaving her with $11K of taxable unearned income. She is filing federal and state of Colorado returns. Question is: Does she have to also file as a non-resident in the state of Alabama due to the unearned income coming from a college in that state?
