Another tax question...1098-t

Parents Forum
1

<p>My son received a 1098-t in the mail today. I understand that this is for his scholarships and grants. My question is my son did not work in 2006. So will he need to file a tax return? Or do I claim this on my taxes? I am so confussed. If you cant tell this is his first year of college.</p>

2

<p>A 1098-t does NOT report income, so it is not about your son's scholarships and grants. It shows the EXPENSES that were incurred last year for tuition & expenses. It is for your information. Under some circumstances, the amount reflected on the 1098-t may be used for a tax deduction or credit. See:</p>

<p>Explanation of Your IRS Form 1098-T Tuition Statement
<a href="http://www.asu.edu/sbs/explanation.htm%5B/url%5D"&gt;http://www.asu.edu/sbs/explanation.htm&lt;/a&gt;&lt;/p>

<p>Education Tax Credit
<a href="http://www.ecsi.net/taxinfo.html%5B/url%5D"&gt;http://www.ecsi.net/taxinfo.html&lt;/a&gt;&lt;/p>

<p>Education Tax Credits
<a href="http://www.usc.edu/dept/finserv/sfs/tax-cr-1098t.htm%5B/url%5D"&gt;http://www.usc.edu/dept/finserv/sfs/tax-cr-1098t.htm&lt;/a&gt;&lt;/p>

3

<p>Actually it shows both - tuition charged and scholarship monies received. The net amount may be used for the Hope or lifetime learning credit if you qualify.</p>

4

<p>If we do not qualify for the Hope or Lifetime credits, can we ignore the 1098-T?</p>