There is 5,844 in Box 1 and 69,289 in Box 5. This would imply that I have 63,445 in taxable income, but this isn't true; 54,100 of this amount (combination of a college grant, state grant, and work-study aid) went into tuition for the academic year. Would I instead click on "What if this was not paid to this school?" and put in 59,944, because tuition is considered to be a qualified education expense? Thank you!
That is correct. If box 1 does not reflect the actual amount of tuition expenses being paid or received, you will select the "What if" option to enter the corrected amount. In your situation, you will only pay the taxes on the portion of the scholarship that is NOT used to pay for the qualified education expenses, for example, like food or room & board. The program should calculate the taxable amount as the difference between $63,445 and $59,944.
That is correct. If box 1 does not reflect the actual amount of tuition expenses being paid or received, you will select the "What if" option to enter the corrected amount. In your situation, you will only pay the taxes on the portion of the scholarship that is NOT used to pay for the qualified education expenses, for example, like food or room & board. The program should calculate the taxable amount as the difference between $63,445 and $59,944.
Sign In
