Hello,
I did not find information about this matter in the knowledge base, so please excuse me.
My daughter received full scholarship - FAFSA aid through Pell Grant and Cal Grant and University gave her "free" residence through its own scholarship. And this scholarship turned out to be even more the cost of the residency, so they paid her $900 in cash to her bank account plus $500 of private scholarship from Award Fund. Some money was spent on books and motebook, about $2000.
I have read the tones of articles about the taxes in the case of education scholarships, and still do not understand which tax return all this information, including pending 1099-T form, goes to? According to what I read it goes to my return because she is my dependent, but from another info it goes to her tax return because it is the full scholarship, I will not have any credits for it and it does make any sense to put it to my tax return.
Plus the residency, room and board, part of the aid is taxable and should go to daughter's TAX return.
So I am overall confused.
Thanks!
