Moonfamily3
Returning Member

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.