<p>This is our first year with a college student. I think I have this figured out but wanted to ask a few question from those who have BTDT since I just as likely may have it wrong.</p>
<p>Ds has W-2 income from a summer job. He is at school on full scholarships and grants so we're figuring out what part of that has to be taxed (room and board etc). Am I correct that we just add that amount to his W-2 earnings? I don't see anywhere else to put it in (we're using H&R Block online).</p>
<p>His 1098-T for 2013 includes monies for 2014. The 'amounts billed for qualified tution etc' includes his charges for the current - Spring 2014- semester but the Scholarship and grant box includes only money from last semester. Am I supposed to count the 2014 part on his 2013 taxes? I already know we'll be adding to the 2013 amount as there are expenses he paid out of that money that are not included.</p>
<p>Also - everything says grant/scholarship money used for room and board is taxed but does this change at all when a student is required by the University to live on campus? I'm thinking not but didn't want to miss the fine print somewhere.</p>
His taxable scholarship (2013 scholarship - 2013 tuition, fees, & book expenses). Do not count his 2014 Spring semester expenses unless they are paid (by any sources) in 2013.</p>
<p>The taxable part is not necessarily the amount that went to room and board. As 4kidsdad says, take total scholarships/grants credited to his account in 2013 and subtract tuition, mandatory fees and required books and supplies from that. That’s the taxable amount.</p>
<p>Schools do their families no favor when they bill in December but credit scholarships/grants in January. That plus the fact that schools can report amounts billed on the 1098T, not just amounts actually paid/credited is confusing. I agree with 4kidsdad, don’t include the billed amounts for spring in 2013 since the corresponding scholarships/grants weren’t credited in 2013. Is the box that says Box 1 or 2 include amounts from spring checked? Did you actually pay out of pocket for any QEE in 2013?</p>
<p>H&R Block should have an education topic dialogue where you enter the amounts it asks for and then it should put the info correctly on the tax form. If not I would see if you can use some other software for free. I am highly suspicious of H&R Block tax software. The past several tax seasons there have been posts here where it wasn’t handling some things correctly.</p>
<p>No, that the school requires living in dorms doesn’t change anything.</p>
<p>All education tax matters are in IRS Pub 970:</p>
<p>Also adding, keep good records besides the 1098T. Print out copies of bills and/or online account statements showing when things were billed and credited. Also keep receipts for qualified book/supply purchases.</p>
<p>D1 had the same situation with her school and I had the same question. The problem with using the numbers as they appear on the 1098 is that for the year they graduate, the form will show grant/scholarship money for the final sp sem, but no tuition. </p>
<p>What I did was to keep very good records and report tuition and grants/schol only for the tax year (as others have stated above). So, for 2013, if I were you, I’d report fall sem tuition and scholarships/grants and not report the sp sem tuition until the 2014 tax year (I would wait until after the New Year to pay).</p>
<p>annoyingdad - Thank you very much - very helpful info. Yes the box is checked showing that Jan - March 2014 is included. We did pay out of pocket for a few qualifying things. We’ll add those to the total they have. The school listed out the items they used to get the total for box 2. There are a few things missing which they said might be the case. I will look into a different program. H&R Block had no area for me to put the information from the 1098T. </p>
<p>entomom - Good point on the graduation year. Thankfully my son came home this weekend with a folder full of his reciepts. Makes things much easier.</p>
<p>From Publication 970 Tax Benefits for Education
For use in preparing 2013 Returns
Chapter 6 Tuition and Fees Deduction
and example
</p>
<p>I believe it means that you have to substruct number in box 1 from number in box 5 on 1098-T, and advice “keep all your receipts/books/supplies purchases” just doesn’t work.</p>