My dependent daughter is a full-time student in her freshman year of college starting in Fall 2021. She is on a full athletic scholarship. The school did not send her a 1098-T (it appears it isn't required under 1098-T rules) W-2 or any other IRS form, but they did send a "Statement of Athletic Aid" that shows amounts for 2021 Tuition, Room & Board (approximately $7,300, which includes a small cash stipend paid out to her) and Books. I understand the Room & Board portion is taxable while the tuition and books are considered Qualified Tuition and Related Expenses and are therefore not taxable. Aside from this scholarship, my daughter had zero income in 2021. Does my daughter need to file a tax return to report the room and board income? Or, since it is below the $12,250 standard deduction, is she able to not file in 2021? In 2022, she will have attended a full year of college, and the Room & Board amount will be triple (school is on the quarter system), so I think she will have to file then as it will be approximately $22,000 in taxable Room & Board, which is above the standard deduction amount.
