How have you done this... if you have done it?

[Pacun]

Can I push a scholarship of 2K to the student so that the parents benefit for AOC? If yes, how can I do it properly on the student's return?

Thank you in advance for your comments and/or instructions.

 

[Lion EA]

Yes, if the scholarship can be used for other than tuition/fees. Don't know how you do that in ATX. Basically, you apply the some of the scholarship to room & board or something other than tuition fees in your software's reconciliation worksheet. Your software will then move the excess scholarship that you didn't apply to tuition/fees to the wages line with the literal SCH. Now the student is paying tax on that 2K or however much the parents need to max out the AOC.

[Lynn EA USTCP in Louisiana]

In ATX if you click on the W2 line a worksheet opens up wherein one may enter the amount deemed to be taxable scholarship.  It then shows on the W2 wages line with the notation 'SCH' next to it.

 

[Pacun]

Thank you Lion and Lynn. I was able to get the records of payments from the students and I see 14K paid by personal loans so no need for the taxable scholarship but I like the W2 trick.  If they questioned the AOC I will show the loans amount and if needed I will amend.

Thank you again.