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March 11, 2025
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Dependent scholarshi

  • March 11, 2025
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My daughter has a scholarship that is exceeded by expenses for college and no other income.  Does she need to file a tax return.  We claim her as a dependent and filed the 1098 - T with our taxes.  

I.E.  1098T  Box 1 = 15,974  Box 5 = $10,000 .  Box 5 = $2,000 for Room & Board which is not allowable for claiming as Educational Expenses.

She has no income.

 

Does she need to file a tax return or can we skip it this year?  I filled out tax return but it was all zero because we claimed her & Turbo Tax said we couldn't file electronically.  I'd rather not send 17 pages to the IRS for nothing.

    Best answer by MinhT1

    Your daughter is not required to file a tax return as she has no income and her scholarship is smaller than tuition paid.

     

    If she is under 24, you can claim her as a dependent and claim her education credits by using the tuition portion not covered by the scholarship.

    1 reply

    MinhT1Answer
    March 11, 2025

    Your daughter is not required to file a tax return as she has no income and her scholarship is smaller than tuition paid.

     

    If she is under 24, you can claim her as a dependent and claim her education credits by using the tuition portion not covered by the scholarship.

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    SbradAuthor
    March 11, 2025

    Thank you, 

    Yes, she is 20 which is why I am still claiming her.  I fumbled with the Dependent Credit and Education Credit part for a bit, but eventually figured it out successfully.  I just needed confirmation that I didn't have to file her return since she had a 1098T in her name.

     

     

    KrisD15
    March 11, 2025

    That is correct. In your case, there is no taxable scholarship income.  If the student had no other income, the student needn't file a Federal return. 

     

    Form 1098-T is used to determine taxable income and/or education credit. 

    If taxable scholarship income, that would be claimed by the student.

    If education credit, that would be claimed by the Taxpayer that claims the student. 

     

     

     

     

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