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posted Mar 8, 2025 11:05:41 AM

I have a child that is a senior in high school and 18 years old taking dual credit college classes. Is this considered a certificate or credential program?

It is wanting to say her grant is part of her earned income.

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2 Replies
Expert Alumni
Mar 8, 2025 12:44:55 PM

If it is an Eligible Educational Institution - Internal Revenue Service it would be towards a degree or certificate. Usually,  the cost of classes and the grant cancel each other out. If she received a grant larger than the classes and books, there could be a taxable income.

Level 15
Mar 9, 2025 6:04:58 AM

Q. Is this considered a certificate or credential program?

A. No,  unless they are officially enrolled as a degree candidate (highly unusual).  

 

Q. Is her grant is part of her earned income?

A. Only if it exceeded the the amount of tuition. 

Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free.  Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Room & board are not QEE.

If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE .  Books are usually not QEE for dual credit courses, unless included in the course fee.