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Deductions & credits
You can still amend and get the credit for 2017. But she will also have to amend to pay tax on an additional $4000 of scholarship income. The education credit is worth $1000 to $2500 to you. Her tax should be much less.
"It was confusing to me but they used our income to determine something about it". That's the infamous "kiddie tax" where a dependent child's unearned income is taxed at the parent's top tax rate. Scholarships are considered unearned income. The kiddie tax was changed for 2018, under the new law, and will be more costly (trust tax rates are used, not the parent's rate). TurboTax will handle that
"It was confusing to me but they used our income to determine something about it". That's the infamous "kiddie tax" where a dependent child's unearned income is taxed at the parent's top tax rate. Scholarships are considered unearned income. The kiddie tax was changed for 2018, under the new law, and will be more costly (trust tax rates are used, not the parent's rate). TurboTax will handle that
‎June 4, 2019
5:03 PM