My daughter didnt receive her 1098t and all her expenses were paid by grants and scholarships. Do I have to report this to the IRS?

[taxfiler0315]

My daughter is 22 years old and is a dependent on my tax return. She didn't receive a 1098t form from her university last year since all her college expenses were paid by scholarships and grants. Her university says that since we had no out of pocket expenses, we will not receive a 1098t. I have already reported the 1098t for my son since e received a 1098t. 

Do I or does she have to report the higher education expenses on the return since we didn't have to pay anything for her college? Also, will I be in trouble if I dont report for my daughter and do it only for my son since we only paid for his education expenses?

[Vanessa · Accepted solution]

You would not report anything on your return if all of her expenses were paid with grants and scholarships. 

If her Grants and Scholarships exceeded her qualified educational expenses then she would need to report the excess as income on her return.  To report this you would walk through the 1098-T section of TurboTax and answer the Scholarship questions.