Q. Since my daughters scholarships, shown on the 1098-T, were less than the total paid she does not have to include this on her taxes, is that correct?
A. Yes. Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free.
Furthermore, The 1098-T is only an informational document. The numbers on it are not required to be entered onto your or the student's tax return.
Receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. Since you know neither are true, just don't enter the 1098-T and risk an error.
