Taxable portion of scholarship

<p>I need a little help - way to confused about to many things.

  1. Daughter claimed as dependent on taxes
  2. Goes to college full time at an accredited college
  3. Recieved Cheer/Pom and Dance Tuition Waiver of 819.60 (financial aid by year) & Cheer/Pom and Dance Room and Board Waiver of 3404.00 (financial aid by year).
  4. She did not work at all this year
  5. Got 1098T - Box one shows 2574.00 and Box 5 shows 860.00.</p>

<p>Does she have to pay taxes on the 3404.00 & 819.60? Remember, she did not work at all.
Thanks for any assistance.</p>