Of course, because the scholarship exceeded qualified expenses by around $5000.
And I don't think the credits here are at issue. The taxpayer did not pay any qualified expenses, so neither the parents nor the student qualify for anything. And scholarship in excess of qualified expenses is taxable income.
About $5000 of taxable income, so $500 owed in taxes, plus late fees and interest.
Your qualified expenses are tuition and required fees (for example, student activity fees or an extra fee for a lab course or field work). The student health fee is not qualified, even though paid to the school, since it provides for medical care not education. Books don't qualify for this particular purpose.
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/credits-deductions/individuals/qualified-ed-expenses">https://www.irs.gov/credit...>
If you filed a 2017 tax return, you would have been asked about education expenses and form 1098-T. You should have received this form from your school reporting the actual tuition you paid and the scholarship you received. Maybe your parents got the 1098-T, but you need a copy. As you answer the interview questions in the education expense interview, you are asked about tuition and other qualified expenses, the scholarship and so on. If the scholarship (free money) is more than tuition and qualified expenses, the difference is taxable.
If you had no other taxable income and did not file a tax return, then when you do file one, your tax on the scholarship will be about $500. You can be claimed as a dependent so you check that box in the personal interview, even if your parents didn't actually claim you.
Or if you did file a return, but didn't include the scholarship refund you need to file an amended return.
If you filed and did not check the box for "I can be claimed as a dependent" then your tax owed would be much less. It's technically wrong, but you are unlikely to get caught.
