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F1
New Member

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

I'm a resident alien, and I'm studying PhD with research assistant ship, which is paid by a project that my adivor has. That means my advisor pays me stipend, which I get a W-2 for. But also pays my tuition from the same project. I got a 1098-T, which shoes $14000 in Box 2 and $300 in box 5. Can I use the LLC? I don not pay from my pocket, but as I got the 1098-T can we say that the project is paying me my W-2+$(14000-300), but the school automatically deducts the tuition and pay me the rest?

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Accepted Solutions
Hal_Al
Level 15

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

If the assistantship is not reported to you on either a form W-2 or a 1099-Misc, you can treat it as tax free scholarship, up to $14,000. You can not claim the Lifetime Learning credit (LLC) because you did not pay with after tax money.

Alternatively, you can claim the LLC, but then you must treat $10,000 of the “scholarship” as taxable income.

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11 Replies
ScruffyCurmudgeon
Level 7

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

Either there is a lot of missing information or else this seems to not make sense.
What LLC are you talking about?    The $14,000 is your educational expense - not income; and the #00 is a scholarship.  Your questions fails to explain what income you are discussing and fails to explain how some undefined LLC is involved.
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
Carl
Level 15

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

Why would you want an LLC anyway? That basically doubles your taxes when you include the required self employment tax you have to pay in addition to regular tax. Besides, a stipend is not self-employment, any way you look at it in your case. Tuition paid by another on your behalf is not self-employment income. Where are you trying to go with this? It just doesn't make any sense.
TaxGuyBill
Level 9

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

LLC  is presumably Lifetime Learning Credit.

So are you saying you receive $14,000 tax free (which is applied to tuition)?
Hal_Al
Level 15

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

I read that the assistanceship comes from another party, not the school. That's why box 5 is so low.
Carl
Level 15

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

that's fine. When the program asks for scholarships, grants and other assistance not included in box 5 of the 1098-T, they'll enter it then. If I recall, the education section also asks if any education assistance was reported on a 1099-MISC too.
ScruffyCurmudgeon
Level 7

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

So none of us can divine what the story is of this undefined LLC.
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
Carl
Level 15

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

I'm guessing they probably got a 1099-MISC with the amount of the stipend (or whatever) reported in box 7, when it probably should have been reported in box 3. Either way, the program can deal with it as a stipend or study participation payment.
Hal_Al
Level 15

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

If the assistantship is not reported to you on either a form W-2 or a 1099-Misc, you can treat it as tax free scholarship, up to $14,000. You can not claim the Lifetime Learning credit (LLC) because you did not pay with after tax money.

Alternatively, you can claim the LLC, but then you must treat $10,000 of the “scholarship” as taxable income.

F1
New Member

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

Thanks Hal_Al! So, what you are saying is that if I add $10,000 to whatever is reported in my W-2 and do all my tax for that income, then I can claim the LLC. As I'll get maximum LLC of $2000, I don't think adding $10,000 to my income will add that much to my tax. But, one questions that I have is that: can I just add that money to my income without having any other specific form?! If any form is needed, can I fill out myself or somewhere must issue that?
Hal_Al
Level 15

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

No, there is no specific form, but technically  there is a specific place. It goes on line 7 of form 1040 (or 1040A) with the notation SCH.  You do not add it at the W-2 screen*.

The LLC is  a non-refundable credit (unlike the American Opportunity Credit). That is, you will not get $2000. Any tax liability calculated on your income will be only be reduced by up to $2000.

*In TurboTax, you do not enter the scholarship in the income section. Instead, you enter it under educational expenses. After going thru the 1098-T screen, you will reach a place to enter scholarships not reported on a 1098-T. You will be asked is any of the scholarships paid for room & board. Answer yes, even if you used it for something else, and enter $10,000.
Carl
Level 15

If my tuition is paid from a research project that funds me, and not from my stipend (which is reported in W-2) can I get LLC? 1098-T box 2 is $14000 and Box 5 is $300.

Haven't read this thread for a few days now. Looking through it, I'm now realizing he was referring to Lifetime Learning Credit (LLC) and not a Limited Liability Company (also abbreviated as LLC). Now it makes sense!
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