My daughter is a junior at college. We paid tuition and partial room and board out of her 529. The remaining room and board we paid out of pocket. She received a $6,000 grant for a research assistantship that she was awarded. The money is for a two-year research project she is doing under the guidance of her college advisor. No restrictions have been placed on the funds. She used a portion to buy a computer for the research work and has not used any other funds. The grant was paid through her college so it shows up on the 1098-T. After entering information from the 1099-Q and 1098-T, plus entering the expenses for room and board and her computer, Turbo Tax is showing a little of $2,000 that she has to claim as income on her tax return. Her earnings for the year totaled $150.00. Is this all correct? Does she have to claim a portion of the grant on her return?
