My daughter got more scholarship income than her tuition, but all of the scholarship income went straight to the school and then they issued checks to her for the extra that was not used for tuition.
You the parent will claim your daughter as a dependent on your (the parent's) tax return. That's it. You the parent will not claim or report anything concerning education on your (the parent's) tax return.
Nobody will qualify for "ANY" education credits or deductions of any type, in any way, shape form or fashion.
Your daughter will report "ALL" the education stuff on her own return, only if she is actually required to file a tax return. She is required to file a tax return if any one or more of the below three conditions are met.
- If your daughter has more than $1,050 of investment income, then she is required to file a tax return and report all income from all sources. That includes the scholarship money, meaning that your daughter will deal with it all in the education section of her own return.
- If your daughter has more than $400 of self employment income, then she is required to file a tax return and report all income from all sources. That includes the scholarship money, meaning that your daughter will deal with it all in the education section of her own return.
- If your daughter has W-2 income. Add that W-2 income reported in box 1 of the W-2 to the amount of the physical checks she received from the school. If the total exceeds $12,300, then she is required to file a tax return and report all income from all sources. That includes the scholarship money, meaning that your daughter will deal with it all in the education section of her own return.
If your daughter is required to file a tax return, then she will be taxed on the excess scholarship money that she was paid in 2019, and "that" money will be taxed at the parent's higher tax rate. So she will be contacting you for information from your own tax return which you will need to provide her.
