<p>How do we deal with the housing and $1000/year portion as it relates to taxes. We have asked about a 1099 being sent but according to Amber Cappell in the scholarship office and Student Receivables they do not send 1099’s. DH is getting antsy since our taxes are usually done by Feb. 2nd!</p>
<p>Well, if your child is a frosh, then she only has half of a year of housing so far. The housing award is worth the cost of a standard double (even if you have been given honors housing). </p>
<p>So, if that’s $5000 per year (or whatever) then half of that is 2500. </p>
<p>DH is getting antsy since our taxes are usually done by Feb. 2nd!</p>
<p>BTW…NONE of this goes on YOUR taxes. This IS NOT your tax liability. It’s your child’s. It goes on the child’s filing.</p>
<p>Tell DH to go file your taxes.</p>
<p>Well son isn’t NMF, but gets engineering stipend + had some outside scholarships, so I have this issue too.</p>
<p>Any portion of the scholarships that exceed tuition and required fees does count as taxable income. If student files their own form (they can do an EZ), that amount goes on the income line and you are supposed to write SCH “on the line next to it” - that’s from the IRS webiste, I haven’t looked at a 1040EZ to determine exactly where that is. If they have other income, then you put the total amount in the income box and where you write SCH you also write the amount that is scholarship income.</p>
<p>There is a line on the 1040 to include income for a child under 25, but just mentioned investment income, so am not certain if I can include it on my form or not??? </p>
<p>It’s probably just as easy to do the EZ for him though, it doesn’t take very long to fill out those.</p>
<p>m2ck,
But what if your child is still a dependent of yours? I guess that is a better question for my UA grad tax accountant lol.</p>
<p>My son is NMF, and he did get a 1098 from UA, although I can’t make sense of the numbers they used.</p>
<p>My D doesn’t have an NMF scholarship, but her scholarship exceeds tuition. I pulled a 1098 from an online site - turned out UA had sent it to D’s P.O. Box; she didn’t know what it was and never mentioned it. Sigh. </p>
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<p>It looks like UA billed and credited the housing in December, so it’s on the 1098 for 2012.</p>
<p>My understanding is that the excess of the scholarship over the qualified educational expenses goes onto the student’s tax return as earned income. I’m hoping in my D’s case that all of her earned income will be less than her personal exemption, but I haven’t even looked at taxes yet.</p>
<p>DS is a presidential scholar and received a 1098 form. It reflects Fall 2012 and Spring 2013 tuition and course fees. Since it was paid in 2012, it seems correct to me.</p>
<p>My D has the NMF scholarship and received a 1098-T. However, the numbers don’t reflect housing or the stipend. Hers shows $26536 in qualified charges.</p>
<p>My son has the NMF and engineering scholarship, and the 1098 shows $30,800 for scholarships paid. Would that include housing, stipend, and engineering scholarship? His tuition and fees charges were $28617.</p>
<p>Box 1 or 2 on the 1098-T is the amount that UA bills for qualified expenses (that does not include housing). It should total the amount of tution and fees paid during the 2012 calendar year.</p>
<p>Box 5 on the 1098-T is all the scholarship money that UA applied to the students account. If they had a NMF or engineering stipend, a scholarship that covered housing, or any outside scholarships it ‘should’ be included on this line.</p>
<p>If Box 5 > Box 1 or 2 (whichever UA uses) then the student has taxable income.</p>
<p>‘Roughly’ the difference between Box 5 and Box 1 or 2 is the amount of their taxable income (but I believe the IRS wants me to say “dependent on your individual tax situation, please consult publication 970 or a qualified tax professional”)</p>
<p>Publication 970 - available here [Publication</a> 970 (2011), Tax Benefits for Education](<a href=“Publication 970 (2022), Tax Benefits for Education | Internal Revenue Service”>Publication 970 (2022), Tax Benefits for Education | Internal Revenue Service) discusses what qualified expenses are and how to include scholarship income on each different type of tax form</p>
<p>Students can file their own form even if they are a dependent on your form</p>
<p>On a 1040 parents can include un-earned income of a dependent < 25 on their form (but can not include earned income). I have been unable to find the answer to whether the IRS considers scholarship income as earned or un-earned and it’s easier to just file the 1040EZ than try to figure it out.</p>
<p>My son has the Presidential scholarship…should he have received a 1098? I don’t recall seeing anything from UA.</p>
<p>wait… y’all pay taxes???</p>
<p>You can get your 1098 electronically here </p>
<p>[ACS</a> :: 1098T](<a href=“Loading...”>http://www.1098-t.com/)</p>
<p>Thanks for the link…that worked. Wonder why we didn’t receive one in the mail?</p>
<p>^ IIRC, you had to sign up somewhere and tell UA where you wanted to form sent, or check some box in MyBama. I remember doing, just don’t remember what I did.</p>
<p>*m2ck,
But what if your child is still a dependent of yours? I guess that is a better question for my UA grad tax accountant lol.
*</p>
<p>It doesn’t matter that your child is a dependent. Your CHILD rec’d the scholarship, you didn’t. The taxable part does NOT go on the parents’ tax forms. NO.</p>
<p>If your child has a JOB, then his income is on his own tax form, not yours. Same thing.</p>
<p>Before people freak out, your child only pays taxes on the scholarships (or grants) that aren’t going towards tuition, books, and fees. </p>
<p>Those who are only rec’g the Presidential are fine. That goes for tuition and that’s not taxable. Those who got the eng’g scholarship may also be fine for most part since scholarships that go for books and fees aren’t taxable either. </p>
<p>For most kids, they will be paying VERY LITTLE taxes unless they are also working a good bit and their combined income AND taxable scholarships are beyond the minimum limits for even being required to file. Keep in mind, that the first few thousand dollars won’t even have a tax liability. </p>
<p>Many parents end up “writing the check” if there are any taxes owed because the amount owed is much less than they would have paid without the scholarships. </p>
<p>That said, we and our kids have never had to “write a check” to pay any taxes due. My kids have had part time jobs and the amount withheld from their jobs has always more than covered any tax liability from their scholarships and they’ve still gotten money back.</p>
<p>My son has the NMF and engineering scholarship, and the 1098 shows $30,800 for scholarships paid. Would that include housing, stipend, and engineering scholarship? His tuition and fees charges were $28617.</p>
<p>And you may have another $1000 or so that went to purchase text books. If so, then 29,617 is not taxable. Only about 1200 would be taxable, but if your child’s total income (from another job) for the year was lowish, he may still be under the limits of being subjected to paying taxes.</p>
<p>It looks like UA billed and credited the housing in December, so it’s on the 1098 for 2012</p>
<p>My younger son doesn’t have the housing scholarship so I don’t know if that is something that is rather new. I don’t recall housing being credited in Dec when my other son had the housing scholarship.</p>
<p>Any portion of the scholarships that exceed tuition and required fees does count as taxable income</p>
<p>you need to include books in there. …that exceed tuition, fees, and books…</p>
<p>On a 1040 parents can include un-earned income of a dependent < 25 on their form (but can not include earned income). I have been unable to find the answer to whether the IRS considers scholarship income as earned or un-earned and it’s easier to just file the 1040EZ than try to figure it out.</p>
<p>But why file on the parents? If you do that, then the first liable dollar will get taxed. If you file 1040ez with the child, then the first few thousand aren’t taxed. </p>
<p>I doubt that scholarships are considered “earned income”. But, either way, it’s best for scholarships to go on the child’s form.</p>