Since my daughter is a dependent, I have entered her 1099-Q (she is the recipient) and her 1098-T on my return. The 1099-Q reflects a withdrawal for qualified education expenses including an amount equal to the amount of a tax-free scholarship she received. After entering all qualified education expenses, the "Student Information Worksheet, Part VIII - Qualified Tuition Program (Section 529 Plan), Line 8" reflects an amount of "Earnings Taxable to Recipient". Does Turbo Tax automatically reflect this amount in my taxable income or does this amount need to be manually entered on my daughter's return and if so, where?
