scholarships

[crosscountry321]

If total scholarships exceeds qualified tuition and fees, can a graduate student claim lifelong learning? Ex. more than $10,000 was paid to student loans at school #1, but at school #2, student received scholarships that exceeded tuition/fees by $10,000

[Hal_Al]

Simple answer: yes.

But more  of the scholarship will be taxable.

Using an example: School 1 1098-T shows $5,000 in box 1 and 0 in box 5. School 2 shows $6000 in box 1 and $10,000 in box 5.  You can claim the $5000 from School 1 for  the Lifetime Learning Credit (LLC) and you must pay tax on the $4000 of excess scholarship from school 2. 

Alternatively, you may claim the maximum $10,000 of expenses for the Lifetime Learning Credit (LLC) . But, you must then report $ 9000 (4000 + 5000) of taxable scholarship income. 

[Hal_Al]

I just noticed that you say you paid  more than $10,000 with student loans at school #1.

In that case, a better  example would be:  School 1 1098-T shows $11,000 in box 1 and 0 in box 5. School 2 shows $6000 in box 1 and $10,000 in box 5.  You can claim up to  $10, 000 from School 1 for  the Lifetime Learning Credit. You can also claim you used $1000 of the school 2 scholarship to pay  the rest of the expenses at school 1*, leaving only $3000 of the scholarship as taxable.

*You do not literally have to have  done that. You just need to have paid qualified expenses in the same year that you received scholarships. 

[crosscountry321]

Right now the 1040 is showing about $3000 that is taxable income that is added to the wages on line 1, where is the schedule that shows this. Then, then lifelong learning credit was not factored in from what appears, but again there is no schedule to see where this is. How do we get a copy of the schedule (breakdown) and also will IRS need a copy of this schedule, turbo tax did not provide anything but page 1 and 2 of the 1040, no other forms.  Thanks!