let's go back to the beginning.
that 1098T needs to go on your DAUGHTER's tax return , since the scholarships exceed to tuition and related fees. That $7,000 is taxable income to your daughter, who presumably is at a lower tax rate then you are.
if you are stating that the $900 of expenses are 'related fees" (say book required for classes that were not purchased from the university), then your DAUGHTER's 1098T would be $6100 and not $7000. Can you explain in more detail what you spent the $900 on? You can not put that on your tax return!!! (box 1 would be increased by the $900 to make the math work)
the student loan is not tax deductible; it has no bearing on the math here
So now we have $6100 of earned income for the student and another $3900 in wages, which totals $10,000. IF THERE IS NO FEDERAL WITHHOLDINGS THERE IS NO REQUIREMENT TO FILE. and your child is done (with no fee to TT) !!!!
