Hello,
My daughter received a 1098-T where box 5 ($55,446.57) is larger than box 1 ($27,488.57). I claim her as a dependent because she is 19, a full-time student, and made about $5,400 from her job so she didn't provide more than half of her support. Do I enter the difference of $27,958 on her return as income? I did some research and found the "loop hole" but I don't know if I'm understanding it correctly. Would I be able to claim $31,958 as income on my daughter's return and then claim $4,000 for the AOC on mine? Lastly, she did receive a 1099-Q so would that go on her return if I claim the AOC? My understanding is that she doesn't have to report the 1099-Q if no credit is claimed.
