Carl, in our case, the tuition reported covered by scholarship was $2,869 and the total scholarships was $4,220. If I wanted to do as this post suggests and report it on our son's taxes as non-qualified, can I just say that they were non-qualified and report it as income? Or do I need to substantiate that somehow. He lived at home and while we provided meals and a roof over his head, we did not charge room and board, per se.
I figured out how to enter it as non-qualified on his taxes, (answer "Yes" to the question about paying room and board with a scholarship and put $4,220 in), but how do I then take the credit on my taxes in TT? I could answer yes to the same question on my taxes, but then it appears as if I have to say that the entire scholarship amount of 4,220 was for room and board. The only other way I see to do that is to zero out the amount off of the scholarship amount on the 1098T. Would either of these trigger a problem with the IRS? Or do we need to connect the dots somehow? Thanks for your help! (Please note that I revised some amounts after looking at TT further.)
