@ni9 wrote:
Can I split the 1098T to show expenses on my return and show scholarship in my daughters return,
will that help for me to get a bigger AOTC?
Yes.
Maybe.
Generally, the amount of scholarships used for tuition is tax free. But in most cases she can CHOOSE to make more of the scholarships taxable, rather than applying that against tuition.
The purpose of choosing to make part of it taxable is because that then leaves more tuition left for you to claim a credit. In most cases, $4000 of tuition is the amount you are aiming for.
So let's say the 1098-T shows $7000 in tuition and $6000 of scholarships. Left alone, that give you $1000 of tuition to get a educational credit. but in that scenario, it often makes sense for your daughter to intentionally make $3000 taxable. That then allows you to claim $4000 of tuition, which will 'max out' the American Opportunity Credit.
