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Taxable scholarship and dependency
My daughter received $16k in scholarships which covered all of her school expenses (tuition and room/board.) The scholarships were a mixture of Pell grants and an off campus scholarship from her job in her home state that could be used for any education expenses. In order to claim an education deduction she needs to claim $10k of the $16k as taxable income. Since she is now claiming that as income is that taxable scholarship now considered her providing her own support? Or can I still claim her as my dependent even with her claiming $10k as taxable scholarship income? She lives at home during the summer and during winter vacations.
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2 weeks ago