ATX Form 1098-T Input Form

[Christian]

Where exactly in ATX help can I find instructions on filling in this form. A client has some $5,000 of tuition expense and some $8,000 of scholarships and grants. If  I can assign some $3,000 of the difference to the student I can get the parents some credit for the computer and books they bought their daughter out of pocket. I addressed this similiar problem earlier this season but feel I need a better grasp of how this is done. I am going to contact the parents to asertain just how the scholarships and grants had to be applied and go from there. I rarely encounter education credits as most of my folks are retired and such so feel a bit unfamiliar with this and need to up my game.

[Pacun]

It looks like you have to report 3K in taxable income. I would report maybe 5K as taxable and then use $2K for AOC and also use the books and computer expenses when calculating AOC.

[TaxCPANY]

Are you referring to using lines 4 or 7a of the Scholarship Worksheet tab to divert some portion of the scholarship/grant away from being default non-taxable?

[Christian]

That looks to be what I am trying to do. The last time I had this issue I had to get info on how the scholashps were applied. The scholarships requiring the payment of tuition and related expenses must be considered tax free I am assuming. Other scholarships not so construed I assume could be shown as taxable income to the student and payments made by the parents for books and a computer would apppear to qualify for the AOC. In this instance the scholarships are far in excess of the tuition expense and would easily cover the books and computer they bought for their daughter. In point of fact the scholarship income exceeds not only the computer but not a few peripheral items as well which leads me to feel they have no AOC due.