I amended my daughters return because she received Form 1098-T in the mail. Now her return is $0. It was $280. What happened?

Did you amend her return, or modify it?

If you submitted her return, and then amended it after receiving the 1098-T, the Amended return might read 0 if the tax didn't change from the first return she filed. it simply means it made $0 difference.

But if you started her return and then the refund amount changed after you put the information in from the 1098-T, it may have been entered wrong, or she may have gotten more tax exempt tuition assistance than she paid in school tuition expenses.

Additionally, if you claim her as a dependent, she cannot claim any education credits, (which can be valuable), but you can.

If she is your dependent, you claim her exemption. She can still file is she is eligible for a refund (if she worked) or she may be required to file if her income is over a certain amount, but you should be able to enter the information from the 1098-T on your return and apply for a credit. (On her return your child clicks on "I am the dependent to someone else").

The 1098-T does not always show what the student actually paid, she should check your records. Be sure to claim everything she paid to attend class, including books and supplies. If you (or your daughter) paid more than the amount of the expenses, there should be a credit.

Although the 1098-T comes to your child in the child's name, if you claim the child as a dependent, you should claim the 1098-T to apply for an Education Credit.