I give up!!! Countless hours trying to prevent Form 8863 from making the client's scholarship as taxable income.  Client is working toward a doctorate, more than half time student, and qualifies in all ways to have a tax free scholarship. I have poured over Intuit's instructions for filling out Form 8863 with no help there.  The main possibility for error is that in entering the information from Form 1098-T, I should adjust line 1 to include the scholarship number along with the amounts actually paid by the taxpayer.  Is this the answer?  If not, what is?

Another Former All Star