<p>@Madison85. Less income reported on FAFSA, better is next year’s financial aid. As long as the decision is legit.
Parent not claiming AOTC at all.</p>
<p>@MiddKid86 if taxable scholarships are considered unearned income as you say, then form 8615 would have to be filed and option 2 would have to be chosen over option 3.</p>
<p>Option 1 still looks like best option then.</p>