Double checking if I understand your reply and if I can do the following. Could split the scholarship income in Box 5 between my daughter and I?
Example:
Facts: 1098 T slip: Box 1 -8576, Box 5 -9701
I file a separate return for my daughter. For my daughter's return I would enter in 1098 T, Box 5 $2200 scholarship on my daughter's tax return . There is no taxable income/taxes.
For our jt return I would report 1098T: Box 1: 8576 and in Box 5 ( $9701-2200=7501). Box 5 is now less than Box 1.
I would also claim her qaulified education expenses (books and materials) of $2600 and claim her as a dependent. I claim the full american opportunity tax credit (per turbo tax). Technically the scholarships are suppose to go to tuition, books and qualified expenses. Checking if I am allowed to split the scholarship income and claim her expenses in this manner.
Thanks for your help!
