Options and thoughts:
You only have 4 undergrad years to claim American Opportunity Credit. Since this 1098T is a lower amount, it may not be worth claiming AOTC this year.
If you are not claiming AOTC:
- You want the taxable amount to be the $528. You can enter the full amount and expenses or you can enter the taxable portion.
- The tuition has no out of pocket cost, no credit.
If you are claiming AOTC:
- You want the full amount of $1500 taxed.
- This allows you out of pocket costs for tuition and can claim AOTC.
Scholarship income is a hybrid income. It counts as wages when determining if you should file a return. Then it changes form and becomes passive income to determine if you have a kiddie tax. See What is the Kiddie Tax?
@gems7798
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
