FAFSA filed through me but ex claims daughter on taxes - do scholarships affect my tax filing?

This is a common situation for divorced parents. The good news is that scholarships and grants generally don't need to be reported on YOUR tax return, regardless of who claims your daughter as a dependent. Scholarships used for qualified education expenses (tuition, fees, books) are tax-free. Only if scholarships exceed qualified expenses would they potentially be taxable income - and that would be on your DAUGHTER'S tax return, not yours or your ex's. The FAFSA and taxes are separate systems that unfortunately don't always align well for divorced families. As the custodial parent for FAFSA purposes, you were correct to complete the FAFSA, even though your ex claims her on taxes.

when my son got scholarhips we didnt put anything on our taxes at all, the school sends the 1098-T form to the STUDENT not the parents anyway

I've been through this exact situation with my daughter. Here's what you need to know: 1. Scholarships and grants that exceed qualified educational expenses (tuition, fees, required books) are considered taxable income TO YOUR DAUGHTER, not to either parent 2. Your daughter will receive a 1098-T from her college showing the scholarship/grant amounts and qualified expenses 3. Your role as the FAFSA parent has no impact on tax reporting requirements 4. Your ex claiming her as a dependent doesn't change these rules either The most important thing is making sure your daughter reports any taxable portion of scholarships on HER return. The financial aid office at her school can help explain which portions might be taxable (usually room and board covered by scholarships).

When I got my pell grant in college my dad claimed me on taxes and Nothing happened, your fine

The whole system is SO FRUSTRATING!!! I went through this with both my kids and spent HOURS on the phone with the IRS and FSA trying to get straight answers. Every time I called I got different information from different agents. The left hand doesn't know what the right is doing!!! Finally got through to someone who actually knew what they were talking about and they confirmed what others said - scholarships only matter for your DAUGHTER'S taxes, not yours. But honestly the most helpful thing I did was pay for an hour with an accountant who specializes in college financial aid. Worth every penny!!

I had the same issue calling the FSA for a similar situation with my stepson. Spent over 2 hours on hold and then got disconnected twice. Finally used Claimyr (claimyr.com) to get through to an agent in about 15 minutes. They have a good video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent confirmed that you don't need to report your daughter's scholarships on your taxes at all. The only reporting required is if scholarships exceed qualified education expenses, and that would be on your daughter's return. Hope this helps!

your ex is right u dont need to do anything. my daughter got scholerships and we never reported it anywhere, its not income for u

One additional thing to consider - make sure you and your ex are handling this consistently each tax year. If you're listed as the custodial parent on the FAFSA, that should align with where your daughter physically lives most of the year. The IRS and FAFSA have different rules, but you want to be consistent in how you represent the living situation. Also, the FAFSA is changing for 2025-2026 with the FAFSA Simplification Act, and some of the rules regarding divorced parents are changing as well. You'll want to review the new requirements when you complete the application next year.

this happened with my niece and my sister (her mom) ended up getting audited because the dad claimed her but mom did the fafsa and they had different income reported. just saying be careful and keep good records!!!

Just to close the loop on this thread - the consensus advice is correct. As others have mentioned: 1. Scholarships and grants generally don't affect YOUR tax return 2. Your daughter may need to report scholarship amounts that exceed qualified educational expenses on HER return 3. Your status as the FAFSA parent is separate from tax dependency 4. Your daughter should have received a 1098-T form from her school The key is making sure your daughter understands her potential tax obligations. Most students don't end up owing taxes even on the taxable portion of scholarships because their total income falls below the standard deduction, but it's still important to file correctly.

Just wanted to add my experience as someone who went through this exact same situation! My ex claimed our son on taxes but I was the custodial parent for FAFSA. The key thing I learned is that the IRS and Department of Education operate completely independently - they don't cross-reference who filed what. What really helped me was creating a simple spreadsheet to track everything: scholarship amounts, what they covered (tuition vs room/board), and copies of all the 1098-T forms. This way if there are ever any questions down the road, you have everything documented. Also worth noting - if your daughter ends up with a summer job or internship income on top of any taxable scholarship money, she might hit the filing threshold even if the scholarships alone wouldn't require it. Just something to keep in mind for future planning!

I went through this exact same situation last year with my daughter! The confusion is totally understandable - having different parents for FAFSA vs tax purposes makes everything more complicated. Just to reinforce what others have said: you're in the clear as far as YOUR taxes go. The scholarships and Pell Grants don't get reported on your return at all, regardless of who claims her as a dependent. One thing that really helped me was sitting down with my daughter to go through her 1098-T form together when it arrived from her college. It shows exactly what was paid for tuition/fees vs what went toward room and board. The tuition portion is tax-free, but if any scholarship money went toward living expenses, that portion might be taxable income for her (though as others mentioned, most students still don't owe taxes because their total income is usually below the standard deduction). Your ex is actually right that you don't need to do anything on your end - he just doesn't understand that it's because of how scholarship taxation works, not because he claims her! Keep doing what you're doing with the FAFSA as the custodial parent.