Who was this "company" (what is their relationship to you and/or your daughter) and why did they giver her $3000.
Why do you think it is tax free scholarship ant not something else (e.g. compensation)?
Tax free scholarships are simply not reported on a 1099-Misc. If it's on a 1099-Misc, it's taxable, unless you can prove it isn't. If it's in box 3 of a 1099-Misc, it is not self employment. Unfortunately TurboTax aggressively steers you in that direction.
For a dependent, it makes a difference whether the money is reported as scholarship or "other" (misc) income. Scholarship is earned income for purposes of calculating a dependents standard deduction.
As to: "Was any of Charissa's Financial Aid already included as income? and says "Tell us if any of the 15,575 in box 5 of charissa's 1098 T includes amounts already reported as income on Charissa's tax return?" do we answer yes and enter the 3,000 or do we answer no? Do you know for a fact that the $3000 is included in the $15,575? If, so answer yes and enter $3000.
