Scholarship / grant question for daughter's education

emaileboy — Tue, 04 Jun 2019 20:46:24 GMT

college grants = 26,387
qualified tuition + fees = 24,220
So - my daughter needs to claim the difference 2,167 on her own taxes
But - when I enter on MY taxes that the 2,167 was used for room & board - my refund increases by 665.
Why would that be?
grants from school / pell & fed seog = 2,167

That amount is reportable on your daughter's return. It c...

NancyG — Tue, 04 Jun 2019 20:46:25 GMT

That amount is reportable on your daughter's return. It cannot be offset by room & board. It can however, be offset by books, supplies, computer, etc.

You do not need to file a tax return for your daughter- and there will be no benefit to doing so if her income is below $6300. The threshold can be lower when a dependent has unearned income, but taxable scholarships are not considered unearned income for dependent filing requirement purposes.

The taxable scholarship would never go on your return, even if he's your dependent. Fortunately, it doesn't need to go on any return because of the amount.

While you certainly want to claim him as a dependent if he does not provide 1/2 of his own support (and you meet all the other requirements), you won't get a credit or deduction for education. If she has a taxable scholarship, that means you don't have any eligible education expenses. You cannot get a credit when tuition and books are fully paid for with tax-free money. So, if you go through the process of entering the 1098-T, Turbo Tax is not going to produce anything from it. It's essentially a dead end.

You don't technically file a 1098-T. You enter the data on it to produce results on your return. You are welcome to go through the motions, but the net result is that it would produce no tax benefits.

topic Scholarship / grant question for daughter's education in Education

Scholarship / grant question for daughter's education

That amount is reportable on your daughter's return. It c...