If I received a 1098-T and have info in boxes 1 & 5 meaning we didn't actually pay is my child still eligible for the Lifetime Learning Credit?

[KrisD15]

What do you mean you didn't actually pay? 

What is in Box 1 (Tuition paid) and Box 5 (Scholarships) 

If Box 1 is larger than Box 5, you may get a credit.

If Box 5 is larger than Box 1, you might owe tax. 

[mikate1]

My child took college level classes through her high school and because of this we received a 1098-T.  The tuition was paid with a grant and I didn't actually pay anything.  I'm also confused on how I am supposed to answer the question Was my child working on an Associate, Bachelor's or Graduate degree.  

[mikate1]

The amount in box 1 and the amount in box 5 equal each other.  

[mikate1]

I'm thinking I don't have to enter the form since they offset and I wouldn't get the deduction for the Lifetime Learning Credit.  

[Hal_Al]

Q. I'm thinking I don't have to enter the form since they offset and I wouldn't get the deduction for the Lifetime Learning Credit?

A. That's correct.  The 1098-T is only an informational document.  There is no requirement to enter the numbers on your tax return. 

You cannot claim a credit, because you are not "out-of-pocket".

You may have read of a "loop hole", in this forum, for claiming a credit, by having the student pay tax on the scholarship. That's not applicable in your situation. The scholarship is "restricted" to being used for tuition. 

[mikate1]

Thank you for confirming what I was thinking.  This will make things much easier!