Education

@AnnK1  Calm, now, first things first.

Let's start with the 1098-T.

• The program did not tell you she needs to report income. That means box 1 is bigger than box 5. More money spent on education that scholarships received.
• The program did tell you that you are not eligible due to your income. Tuck the 1098-T away in the tax file.

The 1099-Q, was it all used for room and board and qualified education expenses? Then nobody claims it anywhere, it just tucks away in the tax file.

If there were scholarships near the education expenses, so only a little bit of money was spent on school and it came from the 1099-Q, there is money left to cover room and board and food on the go. If there is still some money left over from the 1099-Q, then your daughter will report it.

Example:

1098-T box 1 $20,000  box 5  $18,000 this would mean only $2,000 plus other education expenses were paid by you.

1099-Q for $20,000 so the Q pays for the $2,000 above plus books and misc school supplies of $1,000. This leaves $17,000.

$10,000 for room and board is reasonable depending on your area, it could be more.

$7,000 left as income to go on your daughter's return.

Do you see how much smaller numbers would not be worth bothering about?