As a first-time filer for a college student daughter, I'm more than a little confused!
Just to use round numbers, suppose total tuition plus room & board is $65,000, broken down between $40K tuition and $25K other. She gets total scholarship of $55K and the scholarship is applied in full to the tuition, meaning we pay $10K towards room and board etc. So the 1098-T shows $40K (again, just rough numbers).
Am I correct then in saying that the $15K balance of the scholarship is taxable? Is this reported on an IRS form anywhere or do I just calculate it from her financial aid worksheet?
And does this come up in the series of questions about college expenses and scholarships and the Form 8615? (I ask because I started with another online service which first, asked the questions about taxable scholarships in the Income section, but then second, didn't allow for the 8615 election to use parents tax rates so I switched to Intuit.). I see questions about scholarships for tuition but not for other expenses but I'll go back if that's the place to look.
Thanks
