I think I cannot explain. 🙂
So :
Box 1 - $16,148
Box 5 - $38,362
Difference is $22,214, This is the taxable amount. Everything but Summer was covered by grants and scholarships, I spent another $2,000 on her summer class, but this number is included into 1098-T as tuition expense, and I do not have to report it separately.
At the same time according University letter Room and Board is 10 months by $1,947, i.e. $19,147. So difference between $22,214 and actual Room and Board is $3, 067. They were not spent on anything, the are not itemized separately in the TAX form.
What should I do, what I have to answer on the question "How much of scholarship money was spent on the Room and Board?".
I can put $22,214 and pay $983 tax, but it is not true. It is not the problem of how much I should pay, the problem is how to handle this situation.
