- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I was wondering if anyone else has run into this. My client has 2, 1098-ts. One was a full scholarship amount. Then the dependent went to school at another college during the summer to prep for grad school. So the large scholarship (let's say 40K) is netting against the smaller summer tuition (say $3K) and as a result, even with book expenses, no educations credits due to "zero" qualifying expenses. Mathematically it makes sense, but it doesn't feel right.
If the scholarship was for one school and not both, how can we not get a credit on the smaller 1098T?
Thank you!
Best Answer Click here
This discussion has been locked. No new contributions can be made. You may start a new discussion here
Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes, you can get an educational credit (assuming all other requirements are met).
If the scholarships are larger than the tuition, that means the scholarships are allowed to be spent on non-tuition items.
One Line 7 of the Student Info Worksheet (see picture) enter a number that is $4000 less than the TOTAL amount of tuition (from both colleges).
That will allow $4000 of tuition to be used for educational credits on the parents' return (I used $4000 assuming you were going to use the American Opportunity Credit).
The amount of scholarships not used for tuition (Line 9 on that worksheet) is taxable on the student's tax return. If the student's total income on his tax return is over $12,000, then Kiddie Tax may apply (depending on the numbers, that might mean it may be better to only allocate $2000 to the American Opportunity Credit).
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes, you can get an educational credit (assuming all other requirements are met).
If the scholarships are larger than the tuition, that means the scholarships are allowed to be spent on non-tuition items.
One Line 7 of the Student Info Worksheet (see picture) enter a number that is $4000 less than the TOTAL amount of tuition (from both colleges).
That will allow $4000 of tuition to be used for educational credits on the parents' return (I used $4000 assuming you were going to use the American Opportunity Credit).
The amount of scholarships not used for tuition (Line 9 on that worksheet) is taxable on the student's tax return. If the student's total income on his tax return is over $12,000, then Kiddie Tax may apply (depending on the numbers, that might mean it may be better to only allocate $2000 to the American Opportunity Credit).
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Enter zero in Box 1, and then scroll down to near the bottom of the 1098-T worksheet and enter the actual amount of tuition paid in Line B of the Box 1 reconciliation.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Where on the student's return do you enter the taxable amount??