Thank you, Amy, for your response.
Let me verify a little more specific information from you, if you don't mind.
1. With the internship, my daughter earned $12,600 and she paid $900 in federal tax and some $450 in state. With all the scholarships that were not used for qualified education, it turned out to be $17,000, which TurboTax added into her total income to be $30,000. So it is calculating that she owns additional $790 in federal and $500 in state.
These numbers just look very high in my humble opinion and make me wonder if I am doing something wrong. She is a student after all, and we did not expect so much tax to pay.
Does that sound right for you?
2. I will play with AOTC - we do qualify for it based on the total income. It just does not settle with me to ask for it if we really did not pay for any of her expenses.
Thank you. I would appreciate your advice.
