So I received a 1098-T from my school, showing the amount of scholarships and grants I received for the year. When I got my taxes done, our tax preparer said that my scholarships and grants would be part of my mom’s income on her taxes because I am a dependent student. Does that mean when I file my FAFSA, we put my grants and scholarships amount under the “grants and scholarships reported to the IRS” portion on my mom’s financial information on the FAFSA? I’m confused about this. Please let me know! Thank you!
It is totally wrong if your tax preparer said that any taxable scholarships would be part of your mom’s tax return. Did you misunderstand perhaps? If not, you need to question the preparer about it or get a new preparer. Only investment income, interest/dividends etc. can ever be put on a parent’s return and only if that is all the income the dependent had.
What were the amounts in box 2 and box 5 of the 1098T and was box 7 checked?
I was confused when she said that… But she said "Hi Josephine,
Hope your Friday is going good.
Your 1098-T information went on your Mom's tax return because you are a dependent on her return."
The amount in box 2 was 14,652.00 and the amount in box 5 was 3,624.00 and yes box 7 was checked.
So do I need to put this 3,624 on my FASFA anywhere?
I think that is wrong. However, my D also has some summer job income and file tax return. So the scholarships/grant not for tuition/fees purpose are reported on her tax return. I do claim the tax credit for additional education expenses though.
Does it seem like the amounts in box 2 and box 5 are correct for both the fall and spring semesters? Based on those numbers, you don’t have any taxable scholarships/grants because box 2 is larger than box 5. You have more qualified education expenses than scholarships and grants. What the preparer was likely saying is that your mom was able to claim the AOTC education credit on her return. That is correct. So you don’t have any taxable scholarship/grants amount for either FAFSA question.
So for the line on the FAFSA that says “scholarships and grants reported to the IRS” do I need to put anything there?
I would just check the box for the American Opportunity Tax Credit and then fill in that number, if I’m understanding correctly
Yes, 0 for scholarships. You didn’t report any to the IRS. Yes, the amount your mom received for the AOTC for the education credit question. But for the AOTC, only the amount on the form line referenced. You don’t include any refundable amount she may have received.
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