No one is answering this for her. Canned answers are not helpful. I am confused by the same thing. I think there is a huge mistake in how turbo tax words the question. You can absolutely add the excess tuition in the defendant's return so that the taxes can be paid there and this allows the parents to a obtain better credit if that excess money has already been taxed. I think Turbo tax just needs to say "Yes, he had scholarship or other aid reported on a Form W-2 or Form 1099-MISC or in their income Line 1(or whatever line for their tax form) as a result of excess scholarship money." Turbo Tax also gives zero info on if student enters their 1098-T info on their own return, if the excess scholarship automatically gets added to their income and if the words SCH get added also to the line like it is supposed to. But to the OPs question, YOU WOULD HAVE TO answer yes there to get the credit you are looking for because Turbo Tax does not go on to ask you any more questions about that. Plus, I tried it both ways. If you answer no just because you did not get a W-2 or Form 1099-MISC does not mean you cannot do it. Just another mistake in the wording I believe.
