@eest329423
Assuming you are eligible for AOTC, reduce Box 1 by $4000.
Technically, you are required to report the scholarship income in Box 5 as that is taxable to you. No way around that.
And normally, that income is reduced dollar for dollar by whatever is in Box 1, but you are not required to do so.
The way to get the credit is to reduce Box 1 by up to $4,000.
In other words, you are willing to pay tax on $4,000 of scholarships in return for obtaining up to $2500 in tax credits. Even if you are in the 22% tax bracket, you'd pay $880 in additional income tax, but receive up to $2500 in tax credits - a good deal!
However, if you are claimed by some else (normally your parents) you are not eligible for AOTC, so simply delete the form AND GIVE THE FORM TO YOUR PARENTS WHO COULD BE ELGIBLE FOR AOTC.
if you are not claimed by someone else (normally your parents), you are not eligible for the refundable portion of the tax credit if ALL THREE are true:
1) one of you parents are alive
2) you are filing other than MFJ
3) you are under 24 and you provide under 50% of your own support.
Even if not eligible for the refundable portion of the tax credit, you can be eligible for up to $2500 of the non-refundable credit.
post more details about your situation. Hopefully Turbo Tax is just getting confused when Box 1 and Box 5 are the same (i.e. netting to zero).
does that help?
