My daughter received a 1098-T for calendar year 2020 from her college, showing that she received $4,279 in Scholarships and Grants (Box 5 of the 1098-T). She elected not to attend college during 2020 due to the Covid-19 Crisis. The college shows that the payments received for qualified tuition and related expenses in 2020 as $0.00 (Box 1 of the 1098-T). The Scholarships and Grants that she received were all repaid to their respective sources in 2020. Presently, she is looking at taxes that she needs to pay on the $4,279, based upon what the college reported, even though she did not ever benefit from nor does she have in her possession any of those funds. How does she report this to the IRS using TurboTax? Many thanks!
