If a college student is your dependent and has a scholarship that covered all tuition and then reimbursed the student approx $2,500 in leftover funds after tuition/fees, do parents need to report any income from that?
Have not received a 1098-T but if we do, does that need to go on the parent's 1040 somewhere even though parents are not going to get any credit since all tuition/fees were covered? Wouldn't want to trigger a problem by not listing it if that was necessary.
If the student has no additional earned income they would not be required to file any sort of taxes themself for this $2500 in excess scholarship, is that correct? They just do nothing until they make a certain amount?
Thanks for any help TurboTax!
