How do you enter TWO 1098 T's for one student where one shows excess scholarship and one has greater tuition??

[kae]

If you have 2 1098Ts for one student.  1st is 1098T for last semester undergrad and shows scholarships $7000 greater than tuition.  The 2nd 1098T is for 1st semester grad school and shows $20,000 greater tuition than scholarship.  Are these treated separately where you owe tax on excess scholarship of $7000 (as unearned income) or are these numbers all combined showing you paid 13,000 more in tuition than total scholarships?? Where can you find this answer??  

[MarilynG]

Enter each 1098-T separately as shown in the Education Expenses section.  You are correct that total Tuition and Scholarships will be calculated together to arrive at any eligible Education Credit.

You may not have any taxable income to report and could qualify for the American Opportunity Credit. 

Don't forget to add the cost of Books and Other Related Expenses that are not included with Tuition in Box 1.

Click the link for more info on Education Tax Breaks.