@vvk4 said " Last 2 years my son has been filing his own taxes with 1098-T so that standard deduction completely covers his scholarship receipts of 8k and he pays no taxes."
What about the American Opportunity Credit (AOC)? The parent should be claiming that, unless their income is too high (more than $90K, $180K married). The student is not eligible for the refundable portion of the AOC.
If taxable scholarship is his only income, the first $13,850 is tax free. Scholarships that pay for tuition, fees, books and computers is not taxable.
