1098t loophole for dependent using room and board

Forum|Forum|4 months ago
April 4, 2026
5 replies
265 views

I have a 1098t. for my dependent daughter, in box 1 is $12,455 and in box5 is $16,314. She had $1,500 in books and supplies fees. What do I put in room and board fees in order to claim the AOTC credit. And just to clarify does she have to file a tax return for the taxable excess if its under the filing threshold?

Not A Product Question

Hal_Al

Level 15

Q. Does she have to file a tax return for the taxable excess if its under the filing threshold?

A. No. But you may want to anyway, just to document that she declared it taxable. So far, we have seen no evidence that is really necessary, as use of the "loop hole" is so common.

Q. What do I put in the amount of scholarship used for room and board box in order to claim the AOTC credit?

A. $6359. $16,314 - 12,455 - 1500 = $2359 of her scholarship is currently taxable. Add $4000 for the tuition you will use to claim the AOTC = $6359 that she now needs to declare taxable.

There is a short cut. On your return, enter a 1098-T with $4000 in box 1 and $0 (or blank) in box 5. On her return, if she files one, enter a 1098-T with 0 in box 1 and 6359 in box 5.

For explanations, see this post on the five main points on the 1098-T:

https://ttlc.intuit.com/community/college-education/discussion/re-what-do-i-do-with-form-1098t/01/3760212#M63114