From your message:
“Here’s Your Education Summary” section -
Tuition of $62,603
Bks & supplies $1,309
Grants $31,200
Room & Board $19,679
Recalculating to avoid the 1099-Q
$82,200 in educational expenses (inc. R&B)
-$51,000 1099-Q
-$4,000 used to claim the AOTC
= $27,200 can be used against the grants
$31,200 college grants
-$27,200 left over
=$4,000 taxable scholarship which may no longer be a good idea. Just a reminder about scholarships, they are unearned income and can affect the kiddie tax. She will need to add form 8615. See How do I report and pay the Kiddie Tax on my return this year?
You will need to juggle both returns and the tax situation to determine IF the AOTC will work for you this year. Since your daughter is filing a tax return, the kiddie tax will kick in.
See
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