Confused about this part...If the scholarships/grants exceed the qualified education expenses, then the student will report the 1098-T and all other educational expenses and scholarships/grants on the student’s tax return. The student will pay taxes on the amount of scholarships/grants that are not used for qualified education expenses....My daughter's scholarships/grants exceed the cost of her qualified education expenses. I get that she has to pay taxes on that, but Turbo Tax is giving her the American Opportunity Education Credit even though we are claiming her as a dependent. I didn't think she qualified for the Education Credit if we are claiming her as a dependent.
