Lucho Posted June 6, 2012 Report Posted June 6, 2012 Student Form 1098-T shows in box 2 close to $44,000 for amounts billed for qualified tuition and related expenses; box 5 also shows close to $28,500 as scholarships or grants. Student had a W-2 with $3,979 which she reported; her parents claimed her on their tax return. The college is giving the student a detail of how the scholarships or grants were used and telling her that she is supposed to report some of the scholarships or grant money because not all those funds were used for tuition. When I see Box 2 and compare with Box 5 I wonder why she would report some of the funds from Box 5 as taxable if box 2 is over the amount of Box 5. For those of you with experience in scholarships, I beg your help. The College Associate Director of financial Aid is telling the student that she needs to amend her tax return to include the amount that according to them is taxable. Thank so much in advance for any enlighten I can get to help this student. Lucho Quote
Lion EA Posted June 6, 2012 Report Posted June 6, 2012 Follow the money. Use the transcript from the college and not Form 1098-T. For instance, if she received $28,500 in scholarships during 2011 to put toward $22,000 in tuition in 2011 (Form 1098-T might report billing during 2011 for fall 2011 and winter 2012) then she has an excess of $6,500 to report as taxable income. Quote
Lucho Posted June 6, 2012 Author Report Posted June 6, 2012 Follow the money. Use the transcript from the college and not Form 1098-T. For instance, if she received $28,500 in scholarships during 2011 to put toward $22,000 in tuition in 2011 (Form 1098-T might report billing during 2011 for fall 2011 and winter 2012) then she has an excess of $6,500 to report as taxable income. Even if student never got any of that excess money described in transcript? Thank you again Lucho Quote
Lion EA Posted June 6, 2012 Report Posted June 6, 2012 It's in the burser's office on her behalf. Probably paid for room & board or something other than tuition. DId she return it to the scholarship agency? The same year? Follow the money. Quote
Lucho Posted June 6, 2012 Author Report Posted June 6, 2012 It's in the burser's office on her behalf. Probably paid for room & board or something other than tuition. DId she return it to the scholarship agency? The same year? Follow the money. Got it. Thank you again and have a blessed day Lucho Quote
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