Q. Can 6400 of the scholarship be reported on the 2020 return since this was the amount that was used for 2020 qualified expenses or does the full 11400 have to be reported on the 2020 return?
A. Report only the $6400. You will reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2020 expenses". Or you can you can just change box 5 to $6400.
Be sure to keep track of the adjustment for next year.
Q. Would she report the taxable income on her tax return or would I?
A. If any of her scholarship is taxable, it goes on her return. If she has no other income, she does not need to report taxable scholarship under $12,400.
