My student has taxable scholarships this year and received a 1098T. Everything I have read states that the taxable amount should be entered on my students 1040 with SCH next to it. I understand this will be added to her earned income and if her earned income is over the threshold she will pay taxes on the difference. Is there ever a reason where her taxable scholarship income should be added to our 1040 instead (husband and wife filing jointly)? Does the ACA tax credit require her income to be added to ours? Again, my understanding is that if she is under the threshold for filing then her income does not need to be calculated into our MAGI for the ACA credit.
