I am confused. I am enterting my daughter's 1098-T on my tax return. She has $1,900 in box 1 which is the money I paid to the school for her and $9,000 in box 5 scholarships and grants. As I put all the information in, it states my daughter has to include the $7,100 as income on her tax return. First question, why does she have to include the 7,100 as income when the scholarship/grant she received paid for classes and books for her degree(qualified educational expenses). Also, her scholarship/grant was a lot more then $9,000 so I am wondergin why the full amoutn does not show. She is a freshman in college. Second question, why is not allowing me to get credit for the $1,900 that I did pay for her to go to school?
