<p>Okay, my question is somewhat different–my d’s scholarship is for full tuition & fees, so theoretically no taxable portion. She needs to file her own 1040 since her college fund has capital gains (what a joke this year!) She has no other income. Since her 1098T shows higher eligible expenses than her scholarship, I’m confused as to where I put the numbers. If I put her whole scholarship on line 7 (as per above), where do I put the offset of eligible expenses? Line 34 says use form 8917 for Tuition and fees deduction, but that doesn’t seem to actually offset. And form 8917 says that the qualified expenses need to be offset by the scholarship. I’m confused and I’m a CPA! Does anyone have any insight to this?</p>