1098-T

[joetribble]

Box 5 is greater than box 2 and box 7 is checked, how to reduce tax consequence?

[Texas Roger]

If you are an undergraduate student and would qualify for the American Opportunity Credit, you can include amounts paid for books and other course related materials to reduce the amount of scholarship income that is taxable. Otherwise, there is really nothing you can do. Any amount in box 5 that exceeds the amount paid for qualified education expenses is taxable.