scholarships/grants are tax-free if used to pay for tuition.
If you make direct payments to college or university without taking withdrawal first, your dependent is deemed the recipient. In that case, you don't need to enter the 1099-Q form on your tax return.
Check to see if you qualify for the American Opportunity Tax Credit:
- Open or continue with your return
- Click on Show more next to Education under Deductions & Credits section
- Click on Start or Revisit next to Expenses and Scholarship (Form 1098-T)
- Answer questions on the screens that follow.
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