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1098- T how is this taxed and Educational expense
Hi,
We received at 1098-T for our daughter who just started college this fall. We are filing jointly and claiming her as a dependent. She has no income. We are abit lost in this area and appreciate your help.
1. Box 1 ( payments received)- $8576 is less than box 5. Scholarships or grants -$9701. Difference of $1,125.
What type of payments are included in box 1 ( ie. both tutition and room and board?).
What is included in scholarships and grants? ) ie. is tutition waivers/exchange and outside scholarships included?
2. Is this difference ($1,125) taxable income on our joint return? If so, where/how in turbo tax do you report it?
3. Can we still claim any educational expenses for our daughter if box 5 is greater than box 1?
There is section in turbo tax that asks if " there is any educational expenses to deduct- expenses that was required by the school and those not required by school? We have expenses for books/computer equipment (not required by school , but she is CS major and some classes online ) for $2500.
4. Would we still be eligible for the AOTC?
Thanks in advance for your help.