KrisD15,
Thanks for your reply. It took me a while to find time to go through your answer in detail, but I think I understand it now. A couple questions:
- Based on your answer, it appears that, although I have to allocate the restricted scholarships to tuition, I am able to allocate the $25,000 unrestricted scholarship to other expenses in order to get a better tax break. Am I correct that if I DON'T count the $25,000 as tax-free scholarship funding on my claim, I DO have to have my daughter count the $25,000 as taxable income on her claim? That's still a good deal, but I want to make sure.
- To answer your question, I did include meal costs, but only for the period when she was at school. I did not include any cost for meals or other expenses while she was attending class remotely while living at home because school was closed for COVID. Is it permissible to include some costs while she was at home?
Thanks again!
