My 18 y/o daughter is a full-time student and has a part time job. She made $4298.60 and her Form 1098-T in box 1 has $8474.03 and box 5 has $9333.00. She has a Pell Grant and Life Scholarship. We purchased a laptop outside of the school in the amount of $1200.00. My understanding is that the difference in the boxes is $858.97. Is the amount of $858.97 considered unearned income and since the laptop purchase is not reflected on this form how do we show the adjustment for the laptop?
I file as head of Household and claim her as a dependent on my taxes. I want to know do with both file? Does she need to file taxes with a single status with the Form 1098-T or does she even need to file the taxes at all? Or do I file the Form 1098-T?
