Q. When we enter the information from the 1098-T into TT, it indicated that our child needed to file taxes as the scholarship was taxable to her.
A. You can ignore that.
In one of the alternative calculations, where you would get $2000 Lifetime Learning Credit, she would have to report $502 (1334- 832) of the scholarship as taxable. Since the AOC was chosen, that doesn't apply.
