FAFSA and reporting taxed grants, 1098t

Paying for College
1

So I received a 1098t from my school. I received around 6100 in total grants for 2015 and have 5700 in qualified bills. I assume the 400 is taxable? Where do I report this in the FAFSA? I tried putting 400 under question 44d in the student section but I get an error of some sort.

Also, as a dependent, do I give the 1098t to my parents so they can fill out form 8863 on their tax return?

I am fairly certain I don’t need to file a tax return, given that I do not work, no work study, or anything like that. The 400 that is taxable is well under the required limit for filing.

Apologies for the questions, this is my second semester of college, and IRS publication 970 is not particularly making any sense to me.

2

Basically you had more grants than qualified educational expenses so yes the $400 is taxable. But if you had to buy textbooks or other required supplies for school, those would reduce the taxable-ness of the $400.

BUT

Are you parents planning to claim the AOTC tax credit? For books or anything else?

If so, make sure you also look at https://www.irs.gov/pub/irs-utl/Pell%20AOTC%204%20pager.pdf .

Do you have room and board costs or do you commute?

3

(and yes, you are under the limit for having to file or owe tax on that…but I ask about AOTC because you, or your parents, might be able to get some money back, depending on your situation)