taxbrewster Posted April 8, 2008 Report Posted April 8, 2008 Quick question - Student T/P has 17250 in scholarships (box 5) and 13545 in qualified expense (box 2). Nothing else. He wants to show 3705 as income on LN 7 of 1040, therefore qualifying him for $300 from the feds and fill a state return owing $12? OR should i just not even brother, will this create a problem in the future. Thanks, to everyone that supports and helps this community run!! Quote
Pacun Posted April 8, 2008 Report Posted April 8, 2008 Michigan I think that after you update your profile and add your state to it, a lot of answers will come your way. In order to make the scholarship taxable, you need to know how the money was spent. Most states have a low income credit and you might not need to pay the state. Quote
taxbrewster Posted April 8, 2008 Author Report Posted April 8, 2008 Ok, i guess i was not clear. I think he has to declare the income because he is no longer in "school", but the university treats him as he is, that is why a 1098-t was issued. The scholarship is income that is earned while he works at the clinic at the school. However he is graduated and collects a check everyweek (in 2007). Was not issued a 1099-misc or w2. The money was spent for living expenses. Just as if he was working. Thanks. Quote
LindaB Posted April 8, 2008 Report Posted April 8, 2008 I think you should read in Pub. 970 and see if any of is really taxable, and not just do it or not because he wants the $300 rebate. Quote
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