Scholarships exceed tuition on 1098-T

[schirallicpa]

Students 1098T shows tuition of $1955 and scholarship of $5363. I'm thinking this is taxable income to him. Is that right?

The thing is, in the spring 09 semester, he has essentially paid that back with their adjustments to his aid. He had to take out more loans to cover the reversal of the overpayment.

I'm thinking in 09 he may receive a stmt with an amount in box 6 for adjustments. Which creates an amended 08 return.

Do I report as is now, and wait and see?

Or I can be like the creep I used to work for, and consider it gravy money for next year with the amended return.

[kcjenkins]

Timing differences are a pain, but it's not your fault either. We just have to deal with them as the law is written, which means sometimes it is not fair, but it is 'correct'. And coming back and amending later is sometimes the only legal option, in which case I do not feel like a creep for doing so. You're only a 'creep' if you cause the problem and then charge for fixing it, IMHO.