<p>Finally got around to doing my daughter's taxes. She was not employed at all during 2012.</p>
<p>She has two 1098-T's. The first has $14685 in qualified expenses and $15,500 for scholarships and grants. Box 7 is checked, indicating that the amount in box 2 (expenses) is for January-March 2013.</p>
<p>The Second 1098-T shows $19,180 for amounts billed, and $16,500 for scholarships and grants.</p>
<p>Are both reportable for 2012? That would mean that tuition was more than the scholarships, so she'd have no reportable income, correct?</p>
<p>I can't find any information on how to handle the first one, for the 2013 spring term.</p>
<p>I checked her student account, and the $15,500 in scholarships was deposited in January. So that will end up coming into play for this tax year, I think.</p>
<p>The credit won’t help us because we only owed $283 in income taxes for 2012.</p>
<p>Why did she get two 1098-T’s? Two schools? Was one amending a prior year? If so, you are supposed to amend the prior year return based upon the revised information.</p>
<p>KKmama - 40% (or up to $1,000) of the AOC credit is what they call a refundable credit. That means you can get up to $1,000 eve if you have no tax liability for the year. 40% of 1865 is $746.</p>
<p>School has started issuing separate 1098-T’s for the separate semesters.The one form is for money due and scholarships received for fall of 2012. The second is for money due and scholarships received for spring semester this year. The government grant and the school’s scholarship were credited on January 3.</p>
<p>I guess the spring semester 1098-T would come into play for 2012 taxes for those who owe money for the spring semester and pay in December. But since all of her expenses were paid from scholarship and grants, there was nothing for us to pay. Thank you, tax payers, who contributed to her Obamacare grant.</p>
<p>I’m guessing I just have to put the spring 1098-T in the file for 2013 taxes. She will have additional expenses for this summer’s tuition, so it will balance out the surplus scholarship on that form. </p>
<p>It is, Swimcatsmom. I don’t understand why the colleges are not being held to standards that other businesses are in terms of sending out accurate forms.</p>
<p>No one has mentioned required books/materials/ supplies, which are QEEs for the AOC and for determining the taxable portion( if any) of scholarships/grants.</p>
<p>I’m general, people should pretty much IGNORE the 1098T. use your own records - your child’s financial aid award letter, billing statements from the school,and records for purchase of textbook,etc.
The financial aid letter will show if your child received scholarships/grants in excess of A)tuition + B)required fees + C)required books/ materials/supplies. Add in any outside scholarships not shown.
If the amount of scholarships/grants is less than A+B + C, then none is taxable.</p>
<p>in post 38 of that thread I give a link to an earlier thread titled “Scholarships - Taxable?”,Which is useful here. Quite a few TTers are using the approach of matching the scholarships to the school term for which they apply,which makes way more sense than using the calendar/tax year. see that thread, in addition to the one linked above, for our reasoning.</p>
<p>I had to do a spreadsheet listing all the bills (tuition, housing, fees, books, etc.) when they were paid, and allocation of scholarships/grants to what expenditure, and whether the expenditure was qualified or non-qualified.</p>
<p>oops! -
In my previous post I meant “CCers”, not “TTers”. TT was a board I participated in years ago. I’m having too many senior moments these days!</p>
<p>On my daughter’s 1098, the total amount billed is $8,346.00
Scholarship amount is $7,353.00
$800.00 of that scholarship amount is a private scholarship that can be used for any college expense. The remainder is a tuition scholarship from the State, so it is directly applied toward tuition.</p>
<p>While reviewing my taxes today before I hit the submit button, I realized that I just entered the entire $7353.00 into the field for scholarship amounts. Upon further research today (yes–I’m one of those last-minute tax filers!), I discovered that I should reduce that amount by $800 since I could say I used that money toward unqualified expenses (room & board).</p>
<p>However, I already submitted my daughter’s taxes a few days ago and I did not list $800 as scholarship income.</p>
<p>Is there any place to include that income on OUR tax return? Yes, I realize that is not ideal since we’ll be taxed at a higher rate. But I don’t want to try to amend her return and send up a red flag.</p>
<p>No, you can’t report the $800 on your return. It’s your daughter’s earned income.</p>
<p>Your only options are to forgo using the $800 toward the AOC or have your daughter file an amended return. Filing an amended return probably wouldn’t raise a red flag, but should it and you get an inquiry it probably could be handled through the mail provided you have the documentation.</p>
<p>Thanks for the info. I will probably go ahead and file the amended return. I have my statements from the school–$2557 for residence hall and $1891 for the meal plan. That more than covers the $800.</p>
<p>Primarily I meant doc showing the qualified expenses and your payments for them. I’m assuming you have figured $1793 billed QEE for the AOC if your daughter reports the $800. Be sure to add required books and supplies if the cost came out of your or your daughter’s pocket and you have receipts.</p>
<p>I misunderstood–I do have that documentation. And yes, I have added a small amount for books and supplies. I have email “receipts” of all of her book purchases. Her college bookstore is horrible and she purchases everything online. Hopefully that will suffice.</p>
<p>Sorry, but I have another question. I’m trying to amend my daughter’s return. I used TurboTax, the free edition. Where do I enter the $800 scholarship income? I assumed it would be in the income section, but I can’t find an entry point. I tried to amend the education section, but it’s asking for the entire 1098-T information. Since I’ve entered that info with OUR return, I didn’t think it would need to be reported on hers as well.</p>