ThomasM125
Expert Alumni

Get your taxes done using TurboTax

If you made the contribution in 2020 for 2020 and removed it by the due date of your tax return (April 15, 2021) then you wouldn't be treated as having made the contribution so there wouldn't be any penalties.

 

Your parents would claim the form 1098-T on their tax return to see if they qualify for an education credit, unless the scholarship income on it was more than the education expenses, in which case you would report it on your tax return, as it may be taxable income to you.

 

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