Different situation, but related question:
Currently I have a scholarship that wipes out all of my expenses that I could use for AOC. I suspect that if I include a portion of my scholarship as taxable income, I could claim some of this credit. Per Pub 970, p. 16-17. Note the line: "The fact that the educational institution applies the scholarship or fellowship grant to qualified education expenses, such as tuition and related fees, doesn't prevent the student from choosing to apply certain scholarships or fellowship grants to the student’s actual nonqualified expenses.", see also Example 4 on p. 17.
@DaveF1006 , how can I include some of my scholarship as taxable income in order to claim this credit? Should I fudge a 1099-MISC or some such?
