every scholarship is different, if working like a TA or research student it can be earned income and reported on a w-2 so that will matter how the scholarship is reported. Do note if you don't claim your student (no exemptions) although they are your dependent, don't claim them, they can get the non-refundable education tax credits and reduce the kiddie tax and income taxe on their return. You can still add them back for state purposes (check your state rules). So it may be beneficial to try it both claiming them and taking education deductions on your return and trying to not claim them and allow them to take it and see which scenario provides more value. Since the 2018 tax law has truly not been finalized, there are too many open issues that different sources are claiming opposing answers. Will they get a $12k standard deduction, 2018 calculators show they do but many have said that's not true. I'm just waiting till June until the IRS actually finalizes the regulations and the experts have read the tax law.
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
