Q. I only have 6,900 on my W2. When I added the 1098T to my return I owed that amount. Is it because I can be claimed as a dependent?
A. Yes, but not exactly. Your age and student status are part of it. You're affected by the "kiddie tax", wherein most of your unearned income, including some of the scholarship is taxed at the parent's marginal tax rate. See calculations on form 8615.
Q. Also, where would my mom claim the $4000 expenses in turbo tax?
A. Even though you entered the 1098-T, on your return, she also enters a modified 1098-T on her return at Deductions and Credits / Educational Expenses and Scholarships. She answers yes about getting a 1098-T, but enters it with $4000 in box 1 and box 5 blank.
