Also, is the $4000 on my return going to get me back an actual additional $2500 refund or is it just a $2500 deduction at that point?

I get it...the difference between the parent's return and the student's return is still $15K and that is OK?

Followup question....Daughter is on scholarship at a school in OH. She is my dependent and I live in IN and she is an IN resident according to school and how I ...