Education

I think I have satisfied myself that Form 8615 is necessary but I am still confused at how I put the income into her return. Do I do it by the line 1 with SCH or by the 1098-T or both?

Also I have a question on where TT gets the parent tax on line 10 in Part II of 8615? The run I made came up with a number that is nothing like the tax on her father's return.