I am an undergraduate at a full-time college in another state. (I am claiming residency in my home state, which I am allowed to do.)
Both of my parents are living. They can claim me as a dependent.
I have a 1098-T with approx. $53,000 in box 1 (payments received for qualified tuition and related expenses) and approx. $20,000 in Box 5 (Scholarship or grants).
TurboTax says I need to pay federal income tax on the $20,000. This happens whether I tell TurboTax that my parents are taking me as a dependent or not.
Is this right?
