Thank you again for the detailed response.
If I understood correctly, based on the example I claim her as my dependent and claim her 1098-T together with her qualified expenses. On the other hand she reports $5,000 under other income as “taxable scholarship” on her return and still marks that she has a 1098-T form as well as that she is being claimed by someone else?
And to double check, the difference between the amount in box 5 and box 1 of her 1098-T is what defines her taxable income?
