So, i’m trying to do my corrections and I got really confused as I reached this question/statement: Student grant and scholarship aid reported to the IRS in your parents’ adjusted gross income. Includes AmeriCorps benefits (awards, living allowances, and interest accrual payments), as well as grant and scholarship portions of fellowships and assistantships".
I don’t file taxes and my parents claim me as their dependent… so I’m kind of confused what to do.
I did received my 1098 T from school. But I’m just really frustrated on what to do because looking at my parents form 1040: I wouldn’t know where to look for the student grant and scholarship aid reported…
That question is in both the student and parent section. Sounds like you’re asking about the parent section question. Is either of your parents a student themselves and if so do they have to include any taxable scholarships and grants for themselves on their tax return? If not, you put 0 otherwise you put the amount of their taxable grants and scholarships they put on their return.
So, the question is only referring towards my parents if they are only students? So, since I don’t file taxes, I don’t put anything else right? So, whats the reason for the 1098-t then? I’m kind of confused over that as well.
The 1098T is an advisory document to make people aware that they may have paid qualified educational expenses and may qualify for an education credit on their taxes. That may be the case if box 5 is less than box 2. You parents would be the ones who may qualify for a credit based on you being a student.
In can also alert you the student that you may have taxable scholarship/grant amounts. That may be the case if box 5 is more than box 2.
The details are in IRS Pub 970, chapter1 for taxable scholarships/grants and chapter 2 for the American Opportunity Credit.