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Discussion Forum Index --> Tax Questions --> Education Credit? 1098-T
Glendaandtaxes (talk|edits) said:
| 14 February 2007
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| Hello, I have a client who has a 1098-T with $2188 in Box 2(Amounts billed for qualified tuition and related expenses) and $3600 in box 5 (Scholarships and Grants). Is this client qualified for any credit or deduction for education?
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Kathyt (talk|edits) said:
| 14 February 2007
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| Could possibly result in taxable income if scholarships were not used for intended purpose.
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Sunny (talk|edits) said:
| 14 February 2007
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| This can be turned into a favorable situation: have the student claim the scholarship as income and he pays no taxes; the parent keeps the $2188 qualified education expense for Hope or LTL credit. Before you do it, make sure the organization that granted the scholarship does not require that the money has to be used for tuition or fees.
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JR1 (talk|edits) said:
| February 14, 2007
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| Wow, these things are worse this year than ever! Anyone else notice this? I can't believe any of the numbers on there, like they're random or something. I had one guy hand me one that showed tons of tuition paid, but which was paid by the VA, not him! Glad he admitted it.
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Bottom Line (talk|edits) said:
| 16 February 2007
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| Many scholarships don't specify how the money is spent. Allocate the scholarship money for books, etc and then use the tuition $2188 toward Hope or LTL credit (assuming of course that the scholarship did not cover EVERYTHING.
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