We read some similar threads and think we might need our child to claim some scholarship money as income, but we weren't sure.
Our child received distribution from her ESA to help with college expenses.
When we filed our taxes we claimed the $4000 AOTC.
Considering the 1098T + books+ computer costs - scholarships and the $4000 we claimed there is enough costs to still cover Box2 of the 1099Q, but she's a couple hundred dollars shy of covering the full amount of Box1.
Is it really only the Box2 amount we should worry about, or should she claim enough of her scholarship as income to balance things out with an eye to Box1 instead? Again, we saw on another thread how to do that if we need to.
Thanks!
