We (parents) have already amended our 2018 taxes and included the AOTC for the full $2500. I am now trying to see what needs to be amended on my daughter's 2018 taxes since we are claiming $4000. Somewhere we need to indicate that she is making $4000 of her scholarships or 529 distributions taxable. If it doesn't change her taxes due, that would be great, but I'm trying to figure out the easiest and most beneficial way to do that on her amended return. The program does ask you to enter the 1098-T and 1099-Q and prompts that since she is a dependent she isn't eligible for the AOTC. Should I not enter these forms and simply enter the amount of taxable scholarship on 1040 line 1? My numbers are:
13502 Tuition
+388 Books
=13890 Qualified expenses for tuition credit and scholarships
-4000 Used for AOTC
=9890 Allocated to Scholarship
12695 Total Scholarships
= $ 2805 Taxable scholarship to be reported on student's return
