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No, you do not NEED to include Form 1098-T unless Box 5 (scholarships) is larger than Box 1 (tuition paid).
(in that case there would be taxable income that the student would need to claim)
If Box 5 is larger, please continue the question thread and let us know.
You don’t have to include it but any expenses greater than any scholarship can be used by you for Lifetime Learning Credit.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.
If your concern is that you don't want the kid to have to file a tax return over small amounts, that's not a problem. He is not required to file a return if the taxable amount (the amount box 5 exceeds box 1) is less than $14,600 (assuming he has no other income).
If Box 1 of the 1098-T is more than box 5, the difference qualifies you for a 20% (of the difference) tax credit. You may file his 1098-T, on your tax return, to claim the credit. But it is not mandatory that you claim it.
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