TT says our daughter we claim as a dependent must file her own return for wages/scholarships. Do we or she enter the 1098Q? How do we claim our out of pocket expenses?

[lorirys]

Daughter has $491. &820 on a 1099div and $5000 in scholarships. Her 1098T shows 22K tuition payments and $4700 scholarships

We used a VA529 PREpaid fund for tuition and fees where she is the beneficiary. Scholarships went directly  to college and applied for room and board.

We have about 4k in our of pocket expenses- books and room and board and freshmen orientation fees.

[Vanessa]

Room and board is not deductible.

[Bsch4477 · Accepted solution]

Dependents must file if they have unearned income more than $1,050.  If the scholarship money was used for room and board it is unearned income.