Hi,
I would appreciate any advice on this; tried posting already but it didn't go through.
My daughter graduated last year and got a job. She's filing her own taxes, but we are declaring her as a dependent for the year. Her scholarship last year exceeded her qualified tuition and related expenses on Form 1098T by over $3000. It covered not only tuition and educations expenses, but also a share of room and board. In addition, she spent a few hundred dollars on books and other supplies.
My questions are:
1) I understand that she must declare excess scholarship income, but there were some instructions saying that perhaps the scholarship could be allocated between tuition and room and board to be most advantageous. How can we do that? I can't figure it out from the instructions.
2) Can we, her parents, still take the AOTC? Who takes it, and how do we figure out how much to take?
