Yes. Your daughter is required to file a tax return and include Form 1098-T.
Tax Champ @Opus17 says: "If your grants and scholarships (not loans) are more than tuition, the difference (amounts for room and board or living expenses) is taxable income. You owe income tax on that amount so it will reduce your refund from other wages and withholding or you may even owe.
"The IRS will send you a letter and a bill for back due taxes, interest and penalties if you don't report the income and pay the correct tax."
@Bshukla1234.
When filing 1098-t form my scholarships and grants are higher than my tuition and expenses. So it is...?
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