<p>On line seven, you put the portion of the scholarship that exceeds qualified tuition and fees. Since you don’t have any, you don’t put anything on that line. If the qualified tuition and fees is higher than the scholarships, you use that number for either a tuition credit or deduction on the return of the person claiming the student. I assume that’s you and not your daughter. Her return will have only her investment income on it. Her standard deduction will be $900 because she had no earned income.</p>