College tax credit

[nedlythedog]

My sons college expenses are covered 100% by a scholarship.  He received a 1098-T form . Can he still claim the american opportunity tax credit?

[Fern · Accepted solution]

The American Opportunity Credit is calculate net of scholarship money received so it is not likely your son will qualify for the American Opportunity Credit.

The American Opportunity Credit is calculated on amounts paid for tuition and required fees for the enrollment or attendance at an eligible post-secondary school. To be included in the calculation, the expenses paid must relate to: (1) an academic period that begins in the same taxable year; or (2) an academic period that begins in the first three months of the following taxable year.

The following expenses do not qualify:
Room and board.
Transportation.
Insurance.
Medical expenses.
Student fees unless required as a condition of enrollment or attendance.
Same expenses paid with tax-free educational assistance.
Same expenses used for any other tax deduction, credit or educational benefit.