Q. His room and board/meal plan is only $5667. Do I only enter that when asked what was used towards R&B,
rather than the $8017?
A. No.
When asked if any of the scholarships was used for room and board, answer yes. Then enter the amount you want to be taxable, in the pop up box. R&B are not "qualified educational expenses" for tax free scholarship. So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put the taxable scholarship on line 8r of Schedule 1.
Q. How does the $3948 Pell grant affect the room and board expense?
A. Not at all. The $3948 is already included in the box 5 amount on the 1098-t. No distinction between Pell & school scholarship is needed. Calling it room and board is just how you make it taxable.
