Education

I agree with @KrisD15 , you want to allocate  $4000 of the tuition to the American Opportunity Tax Credit (AOTC), assuming you are eligible (your income is not too high*). 

 

This means that $2193 of the scholarship must be reported as taxable income on the student's tax return (not the parent's return).   If that is his only income, it is not enough to have to file a tax return.

 

   Here's a post on the five main points on the  1098-T:

https://ttlc.intuit.com/community/college-education/discussion/re-what-do-i-do-with-form-1098t/01/37...

 

*$90K,  $180K Married filing jointly.  Phase out begins at $80K ($160 MFJ)