My son is high school student, and last year he took 2 classes at the local community college while still studying in high school. He got a 1098-T form where there's scholarship/grant listed of 1762.20. So we ended up paying less for his 2 community college classes, but we still paid about $1,200 total. Is he supposed to pay taxes on that scholarship? He was 17 in 2023.
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No, you don't have to enter the 1098-T in your return. Just keep it for your records, along with documentation of what you actually paid yourself.
Since he's not in an undergrad program yet, you may qualify for the Lifetime Learning Credit.
Some of it may be taxable.
Scholarships that paid for qualified expenses are not taxable. Tuition, fees, books are qualified expenses. If box 5 of your 1098-T is more than box 1, TurboTax will automatically treat the difference as taxable scholarship income unless you tell it differently, by entering additional book expenses.
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