<p>To qualify for this credit, does your tuition expense have to be more than the school pays?
My parents said they didn't qualify because my school gave me a 24,000 scholarship and they pay 13,000 (plus r&b which doesn't count) Even with books,etc. it wouldn't add to much to it.
Are the credits mainly for students where the parents are paying more than half tuition?</p>
<p>Not only do you not get the credit, but any scholarship money not used for tuition, fees and books, has to be claimed on your income tax return.</p>
<p>The scholarship doesn’t cover full tuition so we don’t have to worry about that. I thought it had more to do with income, but it has more to do with how much actual tuition paid by parents, not room and board, fees, etc.
They put on the 1098 they billed for 38,000 but you have to subtract the scholarship in box 5. I know someone who didn’t do that and I think they will be in trouble later.</p>
<p>If the scholarship does not pay the full tuition and you (or parents) are paying any part of the tuition/fees/books then they are eligible for some or all of the credit (if they are otherwise eligible income wise). How much of the credit they are eligible for depends on how much they have paid. If they have paid $4000 then they are eligible for the full credit (depending on income of course).</p>
<p>We are having a problem with turbo tax. It also takes away and then gives the credit, I don’t know why. I am going to log off and try again tomorrow. It’s been the only “bug” it has. If you put the amount paid in the correct box, it should red the credit I would think.</p>
<p>It sounds like she is doing something wrong. If they paid $4000 tuition and fees and books out of pocket then they should be eligible for the AO credit. Talking to an accountant is a good idea.</p>
<p>I think I see it, she might not have put the full tuition in the box that said "amount paid to university, “Including scholarships.” It deducts the scholarship off after that.
Do loans you used to pay for tuition count? I know you can take the interest off.</p>
<p>Yes loans used to pay for tuition count.</p>
<p>
Okay. I thought you meant that the scholarships were $24K and the tuition was $13K. But the qualified tuition was $38K and the scholarships were $24K leaving $14K for credits. Then you are correct that your parents can take the $14K for credits. You don’t have to worry about the fact that someone people fail to reduce the $38K by the scholarships, because the maximum credits or deduction is based on $4K of tuition.</p>