I am trying to do my daughter's tax return. My daughter in college received a $1000 scholarship for which we were given a 1099-MISC for $1000 of miscellaneous income. That scholarship check was given to the college which is also reporting it on the 1098-T. When I look at Schedule 1 for Form 1040 and the "Supporting Details" page, I am being taxed twice on the $1000 as it counts it as "Form 1099-MISC" and it counts it in the "taxable scholarships" line as well. How do I remedy this? I'm afraid if I don't report the 1099-MISC, I'll be in trouble and the same if I subtract the $1000 from the 1098-T as it will not match what the college sent me.
I should also say that this money will be taxable as her tuition/fees were covered by other scholarships and she has no other qualified expenses.
