1098T

Paying for College
1

My son received a 1098T form from his school. So where I claim him as dependent do I list my section of the Fasfa or his? I am very confused…

2

Ok so first of all the 1098T is an information form from a college that can help you determine if your family can claim education credits such as American Opportunity education credit.

If box 2 qualified tuition and related fees is more than box 5 scholarships and grants, then you should be able to claim the credit.

I assume you are asking about the question 44d on FAFSA in the student section that asks about taxable scholarships included in AGI?

That means if the student had more scholarships than tuition, fees and book expenses then the excess is taxable scholarships and must be reported on student’s tax return.

So you would only list in question 44d of FAFSA the amount of taxable scholarships that student reported on their tax return. NOT the total amount of scholarships received (box 5 on 1098T).

For example if student got $10,000 in scholarships (box 5 1098T) and box 2 of 1098T lists tuition and fees at $5,000 and student bought books for $500, then taxable scholarships would be $4,500

$10,000 - ($5,000 T&F + $500 book) = $4,500

3

The parent section has the same question (different number), that is if parent is a college student.

For your son who is dependent student for FAFSA you list this in the student section. 44d

4

Okay so my sons 1098T box 2 amount was 12628.00 and box 5 amount was 8363.00 and I did file for an education credit under my tax return. So what would be listed on line 44D on the Fasfa?

5

Most likely zero, unless for some reason you elected to declare some of your son’s otherwise non-taxable scholarship money as taxable income.

6

Your tuiton amount on 1098T is higher than scholarship amount by $4,265. So I assume you claimed full $4,000 for QEE for education credit (AOTC).

And it doesn’t seem like your son had to report any scholarships as taxable.

So I don’t think you should list anything in box 44d

Did you use the IRS data retrieval tool yet in FAFSA to import your tax return information?

It will put the correct education credit amount for box 93 a in parent section.

7

Thanks so much for all your help!