You have to move the money around for you to get the credit. It generally is worth you getting a big credit and your student having a little more income. The IRS has a great brochure that explains how scholarships and tax credits interact. This would allow you to enter the 1098-T and perhaps claim the scholarship income went to living expenses enough to give you $4,000 tuition for credit.
Then, the form does go on your student's return where you will need to claim all the income that didn't go towards tuition from your return.
Also, on her taxes, scholarship income can trigger the Kiddie Tax. See What is the Kiddie Tax?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
