My daughter started college in the Fall 2023 with several scholarships that covered tuition, fees, room, and board. She received 1098-T form from her school with Box 1 - $11250 and box 5 with $20629. She is qualified to be our dependent under IRS guidelines, so we claim her as our dependent on 2023 taxes. We also had some qualified education expenses (computer, books) that we (parents) paid out of our income. Following TurboTax questions, we reported her 1098-T on our taxes as well as these additional qualified education expenses (2000). So it qualified us for American Opportunity Credit. it did tell us though to have our student file her own income tax. So that's what we are working on now. Questions:
1. Does she need to report the difference of the box 5 and 1 as unqualified education expenses as her income?
2. Does she also report 1098-T on her taxes? As I mentioned above, we were prompt by TurboTax to report it on our taxes. Do we also report it on hers?
3. Is that true that books and computer that we as parents purchased and reported as qualified educational expenses should not be included in her filing?
4. If the scholarship was received in January 2024 for Spring 2024 semester expense, does that mean that we'll need to report it on the next year's taxes?
Thank you very much!
