Thank you @Hal_Al , @Anonymous . I tried but found I had to go back and add my daughter again after attempting to put the correct numbers in the form. There are some good articles explaining how (1098-T) Box 5 scholarship amounts can be used as tuition - and tax-free while properly assigning some of the scholarship funds from Box 5 also to the student's taxes. Some of the scholarship monies can be used, these articles explain referring to IRS documents, for the university Rent and Board - which is not tax-deductible. That can then be put on the college son/daughter's taxes. This year the standard deduction for them would be (? $12,200?). My understanding is that anything less than that on their taxes would mean they owe no monies. This is my problem with having a full-time, dependent college student: Each year TT changes the way it does the interview. The questions are asked differently each year. In previous years one needed to know the information above and put the proper amount for tax-deductible amounts (tuition, required books and fees, etc) under the parent. TT would then assume the portions that were not tax-deductible would be placed on the student's tax return without directing the user to do so. I cannot figure out what TT is doing this year.
If TT is reading any of this, may I suggest that TT give a brief overview of how they will calculate the items using the requested information before the interview begins? Then I can answer interview questions properly knowing they are using all information needed by the IRS. For example, they ask "Was any of <student name's> Financial Aid Already included as income?" However, TT then proceeds to ask if it was on a W-2 or a 1099. Of course, many students will not have this form but will need to claim it under the student's taxes in any case. Will there be yet another section in the interview asking about Room and Board which does not show on a W-2 or 1099? I shall soon find out! Then I will need to go back and correct any false assumptions I made on what TT would include or not include in this year's interview!
