Filing for student with only $5000 scholarship as income

[grosiles]

Hi,

I have a college student as my full dependent. I completed all the steps on Turbo Tax to enter the 1098-T information, school expenses, etc.  Also I entered a $5000 scholarhip my child got and that was used to cover room and board at her college. Turbotax directed us that she should file a tax return since the $5000 is income for her. That is all ok.

We completed another TurboTax form for her. She has not income (no W2, no wages, etc.), only that scholarship. We completed the educational credit part using the 1098-T, similar to what I did on my return. Obviously she can't claim any credit.

On the final review her bottom line is $0.00, she has $0.00 taxable inconme, and owes $0.00

Should we still file her return, or just skip filing?

Thanks

[Bsch4477 · Accepted solution]

Do not include  the scholarship used for room and board on your return. That’s her income. On your return only include your tuition and book expenses and computer if required. Do not include the scholarship. While the scholarship is her income, since  she has no other income in addition to the scholarship to require her to file, she can ignore the scholarship and not file a return.