I'm looking for assistance with clarifying how to enter these forms.
For example, undergraduate student (single, no children) in first 4 years of college (meets the requirements for the American Opportunity Credit). Student is claimed on parent's return. 1098T box 1 ($3500), box 5 ($6000). Scholarships may be used to pay expenses other than tuition, including room and board. Books payment of $500. Room and board $12,000. The student is also the designated recipient on a 1099Q box 1 ($4000).
1.) On the parent's return, this does not yield any education break, correct?
2.) This scholarship income contributes to 'unearned income' and the student must file a return?
3.) So then, the student reports the 1098T and expenses on their return?
3.) The student (designated recipient) reports the 1099Q on their return?
4.) The health and transportation fees required by the university, (not captured in box 1 of the 1098T) are always considered unqualified payments and not able to be reported, correct?
5.) Is there any way for the parents to capture any American Opportunity Credit?
Thank you!
