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@MGC94 wrote:

My client is 19 and has a 1098t 

box 1 tuition is $15,600

box 5 scholarship $20,369.50

It is causing her to owe... Schedule 1 8R  

Do you have to report the 1098t? 

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Are you asking if you can leave income off the tax return if it causes the client to owe money???

Have you already determined if your client qualifies to be a dependent of her parents?  Depending on the circumstances, it could be beneficial to cause your client to owe MORE money by electing to make more of the scholarships taxable, which could allow the parents to receive an educational credit on their tax return.