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Jesse0831
Returning Member

Reporting Pell grant as income

1098t.  Box 1 $1222.  Box 5.  $1011.  I want to report Pell grant $ of 1011 as income to see if i qualify for larger AOTC. Where or how do i enter this in turbo tax?  Thank You

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1 Reply
Hal_Al
Level 15

Reporting Pell grant as income

Enter the1098-T at Educational expenses and scholarships.  The interview will eventually ask if you used any of the scholarship for room and board. Answer yes and enter 1011 as the amount.  Since room and board are not qualified expenses for a scholarship to be tax free, TurboTax (TT) will enter the $1101 as taxable income to you (line 8r of Schedule 1).  Be sure to enter any book and computer expenses as additional qualifying expenses for the credit. 

 

But, be advised that there's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. It is usually best if the parent claims that credit. 

You cannot claim the (up to) $1000 refundable credit if you are, or can be, claimed as a dependent by someone else.

 

Reference: Line 7 instructions for form 8863.

https://www.irs.gov/instructions/i8863#en_US_2024_publink53002gd0e674

 

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