Scholarship received in box 5 of 1098T is more than tuition in box 1

[darleneb]

the parents income is too great for them to get a Tuition credit, but I am wondering how to report the following:

Box 1 - tuition is $40,000

Box 5 - Scholarship received is $45,000.  

Question - is the $5000 difference taxable and if so where is it reported on the tax return.

OR.... 

can that extra $5000 be treated as additional expenses for books, room and board

and NOT reported as addition income

Any one have thoughts on this?  

thank you

[IRonMaN]

Enter the 1098T on the kid's return - he or she will have a little income to report.  You can reduce the income by the cost of books and supplies, but not room and board.

[Accountant-Man · Accepted solution]

Be careful. Check the entries of the scholarship--are some moneys for the NEXT semester, likely doubling up the scholarship in 2023?

[darleneb]

I dont think a child/ student can file a return and take the tuition credit, if they do NOT pay over 50% of their own support.  the are technically still the partents dependant....

Am I incorrect?

Do you know something different than that>