<p>I'm currently a community college student. Over the summer, I got to take a class at UC Berkeley through this transfer program that I'm in. The program paid for my tuition and fees. I just received a 1098-t form and have no idea what I am supposed to do with it. I'm my parents dependent. Is this something that they need to report on their taxes or do I just ignore it or what? Box 1 lists $2,055 and box 5 lists $2,105.</p>
<p>It’s yours. First, how much of that was tuition, books? That is not income to you. The only thing you have to report on your 1040EZ is the for room and board. Did you have any other income? If not, you may not have to file at all.</p>
<p>See this webpage as an example [Information</a> about Form 1098-T](<a href=“http://www.carrollcc.edu/services/finaid/fedtax/faq1098t.asp]Information”>Federal Tax Credits - Carroll Community College)</p>
<p>It means that you have $50 in potentially taxable scholarships from the program. Did you have to buy required books or supplies for this program? If so, you can add the amount you paid for those to the Box 1 amount and if the total is more than box 5, then none of it is taxable. You should also receive a 1098T from the CC. If costs at the CC in 2013 were $50 more than scholarships/grants, then you wouldn’t have taxable scholarships for the year. It would depend on the amount of the rest of your income as to whether you need to file a tax return for 2013. If you are required to file it would be your return, it can’t go on your parents.</p>
<p>Thanks for the replies. All of the money was for tuition and registration. I had to pay for books. I don’t have any other income.</p>
<p>I’ve also never received a 1098t form from my CC, I don’t get any financial aid for that.</p>
<p>You don’t have to receive financial aid to receive a 1098-T. It’s still early…many schools do not have them available yet. Check the CC website for more info…</p>
<p>Was 2013 your first year of CC? You don’t only get one if you get scholarships or grants. Parents can use the amount in Box 1 or 2 to claim the American Opportunity Credit on their taxes. Many schools don’t mail them. They often are posted online and you may get an email when it’s available with instructions on how to download and/or print it.</p>
<p>2012 was my first year of CC. I’ll dig around on my schools website. Still a little confused here… so what should I do with this form?</p>
<p>If you didn’t have any other income in 2013, then you don’t have to do anything with it. Do you know how much the books cost and do you have receipts from the purchase? You should definitely receive a 1098T from the CC. Show them both to your parents. They may be useful for your parents getting a tax credit, especially the one from the CC.</p>
<p>Alright I’ll hand it over to my parents. I bought the books used on amazon, total $15.98.</p>
<p>jayel94 -</p>
<p>Your parents (or you if you were classified as independent) can claim the American Opportunity Credit (AOC) in only four tax years during the years you are an undergraduate student. If you finish your education in four academic years, it is most likely that this will occur over the course of five tax years. If your undergrad education takes more than four academic years, your educational expenses could end up falling into more than five tax years. For the semesters or years other than the four where someone takes an AOC for your expenses it is likely that someone can take either a Tuition and Fees Deduction or a Lifetime Learning Credit.</p>
<p>So, sit down with your parents, your expenses for your first semester, and your projected expenses for your entire undergrad education, and think through what would be the best way to use your expenses on your parents’ (and/or your) tax returns this tax year and for the next few years. All of the details are in IRS Publication 970. [Publication</a> 970 (2013), Tax Benefits for Education](<a href=“http://www.irs.gov/publications/p970/]Publication”>Publication 970 (2022), Tax Benefits for Education | Internal Revenue Service)</p>
<p>Good luck!</p>