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? Box 1 generally only includes tuition and fees, not room and board as room and board are not qualified educational expenses. You would need to contact your school to see what all is included in box 5.
2. Is this difference ($1,125) taxable income on our joint return? If so, where/how in turbo tax do you report it? The taxable income is reported on your daughters return, not yours.
3. Can we still claim any educational expenses for our daughter if box 5 is greater than box 1? Possibly, it depends on how you choose to allocate the scholarships/grants. See link below
4. Would we still be eligible for the AOTC? Depends on what the grants were used for. If they were used for room and board instead of tuition and fees, then yes, you could still get the AOTC for the amount that scholarships and grants did not pay. You have the option to allocate how the grants and scholarships were used. This will increase taxable income to your child, but depending on their tax situation, you may make out better overall.
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