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How do I address on my 1040 form that 1098-T from my daughter's college makes it appear she received scholarships in excess of tuition & fees paid, which is not the case.
My daughter, whom we still claim as a dependent on our taxes, graduated college in May 2017. The 2017 Form 1098-T from her college shows $0 in Box 2 (tuition billed), which is correct because her Spring 2017 semester fees were billed in 2016, not 2017. 1098-T Box 5 shows $4,500 of scholarships were applied for Spring 2017 semester, which is also correct. But the timing difference in how the school shows spring semester (tuition billed goes on previous-year 1098-T and scholarships applied go on current year 1098-T) makes it appear that she received scholarships in excess of tuition and fees paid, and that is not the case. The 1098-T is in daughter's name. Will IRS be asking her why she didn't declare an extra $4,500 of income on her tax return, since the 1098-T makes it look like excess? Or can I address this somehow on our taxes?