with a $19-$year$-$old dependent in the first year of college.

You have W$-2$ income, as well as capital gains. You also claim education expenses, as well as medical and charitable deductions. Your total medical expense is $$12,000,$ and charitable contributions are $$5,000.$ W$-2$ income is $$83,500,$ and capital gains are $$15,000,$ all long$-$term.

You receive a $1098-$T from your dependent's educational institution, which lists scholarships of $$18,000$ and qualified expenses of $$10,000.$

Is the following statement correct about this scenario?

Is this a correct option?

Your dependent must report the $$8,000$ excess scholarship income as wages on their individual $1040.$

This question may have more than one sub$-$question, which will be delivered one at a time on confirmation of your