Doing my 18 year old daughter's taxes for this year. Got a 1098-T from her school. When I enter Box 1 amount and Box 5 amount, it seems to affect how much taxes are owed in our state of Illinois for her.
Box 1 and Box 5 have different amounts and vary by $2794 (box 5 is higher). If I use the same figure (box 1) the taxes owed to Illinois stay the same and Federal doesn't change at all. If I use the correct amount for Box 5, Illinois tax owed increases about $140. So to me, Illinois thinks this is taxed like income. Does Illinois tax scholarship money?
