@RayW7
Thank you for your this clarification. I feel like I fall in a gray zone in your explanation, so to clarify:
@RayW7 wrote:
If the scholarships/grants exceed the qualified education expenses, then the student will report the 1098-T and all other educational expenses and scholarships/grants on the student’s tax return. The student will pay taxes on the amount of scholarships/grants that are not used for qualified education expenses. However, if the student’s earned income reported on a W-2, when added to the excess scholarships/grants does NOT exceed $6200, then the student doesn’t even need to file a tax return, and nothing has to be reported.
My scholarships/grants exceed my qualified expenses. I have no W-2 income. Together, it does NOT exceed my $6200. Theoretically, I would not need to file and nothing would be reported.
However, I am required to file a return because I have to pay the 10% penalty on my excess Roth earnings. Do I report the 1098-T showing excess scholarship?
