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Education
The amount to calculate education credit should be $4k looking at what @KrisD did above. I did not realize the 1098-T and 1099-Q were both going on child's return. So often, the parent is the one getting the credit. As long as the correct income is being taxed and there is no penalty, the entries above are fine. Especially since her income is so low, however, she won't have a tax liability and so the education credit will not matter on her return. I just assumed you were claiming her due to her low income. I thought you were taking the credit. I thought she would take the Q and you would take the T. Are you sure you can't claim her and the credit? Please review the IRS Worksheet for Determining Support. and go through the quick quiz Whom May I Claim as a Dependent?
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