AmyC
Expert Alumni

Get your taxes done using TurboTax

If you are claiming your daughter and her tuition is more than her scholarship, then you want to enter her 1098T and expenses on your return.

 

This gets tricky. She can claim scholarships as income and you can claim more education credit or she can claim less income and you have less credit. Use the 1098T and the other scholarships to figure this out.

 

For example: She has $20,000 in tuition, $3,000 in extra expenses and $10,000 in scholarship. 

Option 1: She could claim all $10,000 as income and you could claim all $23,000 as college expenses. She could have used her $10,000 on room and board and living.

Option 2: She claims no additional income, you claim $13,000 in educational expenses.

Option 3: some middle ground that works best for both of you.

 

If you are looking at big numbers like these, pick option 2. Otherwise, play with option 3.

 

Once you decide who gets what, add any scholarship income into her return, no 1098T. Just say scholarship income.

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