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Deductions & credits
Brief question after reading the answers.
The 1098 form does not show how much of the scholarship it was for education qualified expenses. Even though is more than qualified educ. expenses (so in theory the difference is taxable)
If we use method 2, i.e. allocate part of the scholarship to room that will count as taxable income, but then the student will get education tax credits (which is good). As you mentioned play with numbers to maximize. However, the key part is how you can prove that part of the scholarship was for room, if the 1098 form does not show that ?
Thank you.
February 8, 2021
10:54 AM