Thank you both. I really appreciate your help.
Student 1 has 2K of earned income.
Student 2 has $500 of earned income.
I was only planning for the students to file for the purpose of reallocating the box 5 1098T scholarships.
So, following your reply to quesiton 1, I would add SCHOLARSHIP $1927 to student one's tax return.
My confusion all along has stemmed with the data on the 1098T. If I understand correctly, the 1098T data does not sync with my tax return or my students'. The online tax prep program seemed to be reducing the value of the credit once I entered box 5 numbers. That's why I thought I needed to reallocate the box 5 numbers to a student tax return as scholarship income so that the AOTC was not reduced on my end. Can I simply not include the box 5 numbers on my return? This didn't seem like the correct way to handle it, thus my question to you! Sorry if I am overcomplicating this.
Thanks again.
@RobertB4444 @Bsch4477
