KrisD15,
Also, is there a "correct" way to enter the $25,000 scholarship? I am thinking the correct way would be to:
1 - Go to Forms, and then go to the Student Info Worksheet for my daughter, then go to "Part V: Education Assistance"
2 - In Section V, enter $36,050 in Line 2b (other scholarships, fellowships, and grants), then enter $25,000 in Line 2c (amount required to be used for other than qualified expenses)
This makes the numbers right, although the wording doesn't seem to match exactly. I think I need to do that on my daughter's return also, though, in order for the $25,000 to be entered as taxable income on 1040 Line 1.
Thanks.
