Education

You can amend your return, if you need to, once the original is settled. I don't know what you entered.

Let's do this a different way.

Total tuition paid box 1 totals $17,716.75.

Scholarships 500+ ?? unknown amount - goes toward tuition up to $1978.75 plus missing information and then remainder to food expenses.

Box 1 of the 1099-Q  $15,738. It is less than tuition, does not need to be entered. Fine if it is, nothing taxable.

So, the Q is irrelevant and does not even need to be entered.

Missing information: unknown expenses for college that were not entered above. The cost of internet due to COVID, books, supplies, etc are not listed above that need to be included in education expenses.

This leaves taxable income of the food expenses above minus the missing education expenses. I can't imagine it being very much, if any at all. You do need to write all this down and determine if she has taxable income. Keep it with your records in case the IRS asks. You can show them how and why you came to your answer.

To report the information on her return, since this is her only income and will be less than $12,400, so not taxed. Follow these steps:

• Click on Federal Taxes
• Click on Wages & Income
• Scroll down to Less Common Income
• Select Show more
• Scroll down to  Miscellaneous Income, 1099-A, 1099-C
• Start
• Answer Yes to Did you receive any other wages?
• Select Other reportable income 
• Start
• Enter Scholarship and the amount.

@paquara