Scholarships exceeding expenses- how to get education credit

Forum|Forum|3 months ago
April 6, 2026
1 reply
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My son's scholarships exceed his qualified expenses. His 1099T box 1 is 14,270 and box 5 is 47,333. Scholarship funds were used to pay tuition, room and board, study abroad travel, and other school sponsored international travel, conference attendance, etc. How can I enter this information to get the education credit (we understand he will pay an additional amount on his taxes by doing this.)

AmyC

Level 15

To take the full AOTC credit, $4,000 of box 1 must be held out. This means instead of the scholarship covering the full tuition in box 1, it covered only $10,270.

The taxable amount of box 5 minus box 1 is $33,063. You want to change that to $37,063 to claim the full credit. If you have other education expenses, that can reduce the taxable amount.

As you go through the program, answer questions about the student and college. Time to enter expenses. Enter books and materials, other course related expenses, room and board, etc.

For example:

other books and materials $0
room and board $37,063

For example:

other books and materials $1,000
room and board $36,063

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scholarshipAuthor

Level 2

I read on another thread with a similar question that the simplest thing would be fo me (parent) to put $4,000 in box one and $0 in box 5. Then, my son would add $4,000 to his scholarship amount on his taxes, so he would pay taxes on that amount. Would that also work?