For this question as i have similar situation for my daughter:
1- What form should the student use to report Extra scholarship money that is taxable? Please note that my daughter doesn't have any other source of income so no other tax forms. I will report 1098-T on my tax return to get the education credit where my daughter is dependent.
2- You mentioned if the taxable scholarship amount for a student is less than $13,850 (standard deduction) then student doesn't have to file tax return.
When filing my tax return, i got the message your daughter needs to file a tax return of $XX,XXX taxable income. Are you saying that this message can be ignored and it is OK for my daughter not to report tax return if the extra taxable scholarship is below this threshold, so she will not be audited by the IRS for not filing this?
