Yes, the scholarship is unrestricted.
If I delete the 1098-T, how do I enter the tuition cost to offset my 529 withdrawal? At the end I should not have anything on line 8z. All of my 529 withdrawals are offset by tuition and other costs. Here is the math:
Spring tuition: 20,785
Spring other costs: 6,985
Total Spring costs: 27,770
My 529 withdrawal: 27,770
Fall tuition: 14,165
Fall other costs: 10,802
Daughter's 592 withdrawal: 10,802
Scholarship applied to tuition: 14,165
Remaining scholarship to be considered for daughter's return: 13,785 (<14,600)
So, again, my problem is, how do I include enough costs on my return to justify the 529 withdrawals, without also including the full amount of the scholarship, which is what happens if I include the 1098-T?
