If possible, can you furnish the numbers in Box 1 and Box 5 on the 1098-T?
It is true that if Box 1 (expenses) is equal to or more that Box 5 (scholarships), the scholarships can be allocated to the expenses and as such are tax-free
HOWEVER
if you enter Form 1098-T in your TurboTax program and continue the interview for the Education Section, you can select "Maximize My Education Tax Break"
The program may suggest the student claim some of the scholarship if doing so frees-up expenses for you to get an education credit. Usually the credit for the parent is more than the tax the student may need to claim. Additionally, if the student's income is below the filing threshold, they needn't pay any tax on that income.
Do you know if you got an education credit?
What is the total income for the student with and without the scholarship?
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