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Education
On your return claim the American Opportunity Credit assuming she qualifies for you to do so. Your qualified education expenses would be the amount in boy1 plus books and any additional qualified education expenses. Your daughter would report on her own return the scholarship income which is the scholarship amount minus the qualified education expenses. You will probably be prompted to pay Kiddie tax on that amount.
You can read about the Kiddie tax here
https://ttlc.intuit.com/community/income/help/what-is-the-kiddie-tax/00/25913/amp
March 19, 2021
6:19 PM
1,618 Views