Q. Box 1 of my Daughters 1098T was 2,433 and box 5 was 2,823. can I have her claim the entire 2,823 as income so that I can take the credit?
A. Yes. That's is exactly how the "loop hole" works.
There is one caveat, you can only do that if the scholarship is not restricted. That is, the conditions of the scholarship do not dictate that the scholarship money must be used for tuition (this is not usual).
