<p>I know you have to deduct scholarships in box 5 from billed expenses in box 2, but can you take textbooks off this year as additional expenses. I thought you could fromt he IRS site,but Turbo Tax, (albeit quirky) isn't mentioning it.
It's a shame you can't take off R&B but any other expense would be nice.</p>
<p>I have never had so much trouble with turbo tax as this year, it wont have me log on the "community" area, wont let me make a new registration, etc. Maybe they are still getting the bugs out.</p>
<p>I also had some trouble with turbo tax, sometimes it takes them a few weeks to get most of the bugs out.I will look into the textbooks deduction later when I have more time, if we could that would be great.</p>
<p>I’m using the desktop version of TurboTax and not the online version, so I don’t know if that makes any difference, but I think I know where you’re supposed to put the textbook expenses.</p>
<p>In the TurboTax interview process, they ask you to enter the info from the 1098-T… Next, there’s a question that asks you to show the amount from Box 2 that was actually paid to the school. After that, you select Done if you have no more 1098-Ts to add. The next page is headed “xxxxx’s Additional Tuition Expenses”. You can add tuition and fees that were not included on the 1098-T and you can add Course Related Materials. According to IRS Publication 970, course-related materials include textbooks that are required of all students in the course. So that’s where you would put the amount spent on books in 2009.</p>
<p>Make sure you are looking at the IRS 970 for 2009 not the 2008 one. When I google IRS 970 it shows the 2008 but the 2009 is actually finally out now and can be found at the IRS web site. </p>
<p>It has been updated to reflect the new education tax credit, the American Opportunity tax credit. The America Opportunity tax credit allows books to be used for the tax credit, which, if you are eligible income wise, gives a better tax benefit than using books to reduce the taxable portion of scholarships/grants. (of course if you claim the student as a dependent it would be you that gets the credit. If claiming the credit makes the student incur more taxes you should claim the credit and give them the amount for extra tax they paid, or more if you are feeling kind) just give them the difference). It also includes the update to the 529 account rules which now allow a computer and the cost of internet access as a qualified education expense for 529 withdrawals.</p>
<p>I never rely on turbo tax to tell me how to claim the education tax benefits but always make sure to educate myself about them from IRS 970. Last year turbotax tried to make our 529 account withdrawals taxable income because they were paid to my husband who is not the student beneficiary. Our State 529 accounts do not give the option of having the check paid to the student, but the money was used for qualified education expenses so was not taxable. In the end I just had to not report it on turbotax but made sure to keep on file the information about what expenses it was used for. </p>
<p>I actually do an excel spreadsheet of expenses/scholarships/grants/loans and what paid for what. That helps me make sure to maximize the tax benefits and minimize taxes.</p>
<p>Thanks for that update, I saw 2008 info for a while myself when googling. I will tally up the books and see what difference it makes, if any.
Is merit scholarship money always tax-free if used just for tuition? My son’s this year is just scholarship, we lost the grant because I got an increase when I changed jobs, (not much but enough to lose the small amount left) I have to pay the difference and he uses stafford to help pay the R&B. (I’d love to be able to claim that)
I wish it didn’t have to be so confusing, I know they probably have a “tax deductions for dummies” book but it would have to updated constantly. : )</p>
<p>Thanks for the link to the 2009 IRS documentation – but in reading the section on the $2500 American Opportunity Credit, I don’t see anything about including the cost of a computer, though I thought that was a change for 2009?</p>
<p>Last year I used H&R block on line to file my taxes. This is what happened - I think. When it asked what was in Box 1 I put in 3201.00. I don’t remember it ever asking me if anything was in box 5 (scholarships) which that box had 860.00. So, because I was not very savy about the new 1098-T this was my first one, someone said I should have subtracted the 860 from the money I paid for tuition - which I didn’t. When I looked at my 1040 tax form from 2008 it says in the tuition and fees deduction (form 8917) line 34 - 3201.00. </p>
<p>I don’t know what to do now. Do I go to an H&R block place and have them help me file an amended for last year? Could I have my child who goes to college file a tax form for last year and claim the 860 as income? She had no other income last year - never had a job. I am really confused but want to do what is right. I don’t want to file this year until I have this mess cleared up. Any help is appreciated. When you explain, please remember that obviously I am not very “sharp” when it comes to the 1098-T. I hope this makes sense.</p>
<p>This year when I received my 1098-T for my daughter from two different schools, the figure in box 1 is quite different from what I paid. It shows I paid more at one school and the other school shows I paid less. I’m not sure if I didn’t forget something or they messed up. Do you go with what is in the box 1 or do you go with what your checkbook shows you paid? Is it worth calling the college as every time I call them, they are not able to understand what the boxes really should have in them. THanks again for any help.</p>
<p>It might matter when you paid - especially for the Spring semester. If you paid in December for the Spring semester, they might count it for 2009 or 2010.</p>