<p>Hi all,</p>
<p>I desperately need help with figuring out what to do with the 1098T form we have received. specifically while completing the 1040. Here are some relevant pieces that you might need to help me :)
I did use the number while completing the CSS for the question on scholarships/grants received.
We live in India so we have tax returns in India.
We do file taxes in the US.</p>
<p>so my question is, where do I put this 1098T information on the 1040?
Do i need to send it in along with the 1040?</p>
<p>Any help will be greatly appreciated. I have been reading and reading and nothing makes any sense. Last year DD was a freshman and that was some learning curve. This is our 2nd year with FA and the learning continues!!</p>
<p>Thanks again and a very good night to all!!!</p>
<p>Any scholarship/grant money that exceeds qualified education expenses (generally tuition and fees and required books) is taxable income to the student. For instance, if scholarships/grants total $15,000 and $10,000 is spent on qualified education expenses while $5,000 is spent on unqualified expenses (such as room and board), then the $5,000 is taxable income - to the student.</p>
<p>Whether a tax return is actually required will depend on the student’s total income for the tax year and whether he/she has enough income to be required to file a return. Generally a dependent student (one that is claimed on someone elses tax return) must file if his/her income exceeds the single person’s standard deduction ($5,800 for 2011). There are exceptions, for instance if unearned income is over a certain amount then the filing cut off is lower.</p>
<p>If s tax return is required, the taxable scholarship/grant income is included with earnings from wages on line 7 (for 1040, it may vary on other forms) . To the left of the amount you write “sch $xxx” to indicate how much of the income is from scholarships/grants. For instance if total income including taxable scholarships/grants is $8,000 and $5,000 is from scholarships/grants, you put $8,000 in the income box of the return, and write sch $5000 out to the left of it.</p>
<p>If you are using tax software, it should put everything in the right places.</p>
<p>IRS 970 is the IRS publication with all the rules regarding education tax benefits.</p>
<p>(I am not a tax accountant, so this is not meant as tax advice)</p>
<p>Thanks @swimcatsmom
DD has made 58$ last year. So no tax due.
we do not have tax sw.
Do not have a breakup of the money received - just one lumpsum.
I will read your post some more to understand.
how it affects the 1040 - i am clueless.
thanks, a</p>