Discussion:Education Credit Confusion
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| 22 March 2007 | |
| Hello everybody
Can anyone help me with case completely new to me: I'm doing a return for a client who has among other items a 1098T. The amounts are as follows: - box 1: Payments received for qualified tuition and related expenses: "blank" - bob 2: Amount biled for qualified tuition and related expenses: 15792.50 - box 5: Scholarships or grants: 17830.00 I thought the qualified expenses to use on form 8863 are the difference between box 1 and box 5, but in this case that doesn't seem to work that way. Box 1 is 0 and the rsult would be negative if I had to substract box 5 from box 2 How do I treat this case. Can this client claim the credit (hope in his case), and for how much qualified expenses? Thank you. | |
Will "the tax guy" (talk|edits) said: | 22 March 2007 |
| It looks to me that his scholarship/grant covered all the expenses leaving nothing to deduct. | |
| 22 March 2007 | |
| ALSO - You have to ask the taxpayer what was paid in the applicable tax year - and also if he/she was reimbursed. I see a lot of teachers with those forms that were reimbursed by the school. | |
Tfortaxes@msn.com (talk|edits) said: | 22 March 2007 |
| Its not just the money thru the office and the bookstore. if there were other books and supplies required purchase off campus add up those reciepts and see if that makes a difference. | |
| 22 March 2007 | |
| What kind of scholarship is it, strictly for tuition and fees or unlimited, can be used for room and board, etc.? If unlimited, may want to claim some of it as income and still get to claim the credit. | |
