Q. Why is the amount of scholarship on 1098-T only $3000 (I guess my school should know) , and did I just turn it from completely taxable to tax free?
A. The question is academic. With that much tuition, we know that none of the scholarship is taxable.
Q. What about 1099-Q? Is it required? I have one, but I thought it goes on the parents' return. They paid directly from 529.
A. No, as long as the distribution was less than the adjusted qualified educational expenses (AQEE).
Q. Wondering again if I did something incorrectly.
A You assumed the $7500 was taxable because it didn't appear on the 1098-T. Now, you're allocating it to the tuition, so it's not taxable. That may or may not be allowable depending on the terms/conditions of the $2000 award and $5000 provost fellowship.
