My daughter at college has 1098 T with $25k in Tuition, $21K in scholarships
Also a 1099Q with 12k distribution, including $5k earnings and $7k base.
Room and board of $13k, so all of the mesp is covering the Room and board, and the scholarships are going towards tuition, and she is paying the 3k difference
She has other W-2's with 4k of earnings and $150 withheld.
I entered all of this in both her tax return and my tax return. It is taxing her about $1200
my adjusted gross income is $295k, ,I am getting note in TT saying after 180k all the earnings on the MESP are taxable, even on her return. Is that correct? Should i not take her as a dependent since she is funding all of this while at school even though it is not earned income.
