It depends. If your financial aid covers all your tuition amount, you do not qualify for a tax break. You can still claim a credit of deduction if you paid for any books and supplies. On your Form 1098-T, your qualified education expenses including tuition should be in box 1. Box 5 is your scholarship or financial aid amount. If you do not receive your Form 1098-T, you can still claim the credit or deduction by entering these two numbers plus any books and supplies you paid out of pocket.
Per IRS, when you receive a scholarship or financial aid that fully covers your qualified education expenses, it is like a wash. You do not get any tax break. If your scholarship does not cover all of your education expenses, you may still claim either a credit or deduction on the portion you pay out of pocket. However, if your scholarship exceeds your education expenses, the difference will be treated as wages added on line 1 of your Form 1040. If you meet certain requirements, you may qualify for an education tax break including the American Opportunity Tax Credit AOTC, Lifetime Learning Credit or Tuition & Fees deduction. To see if you qualify, here are the links:
Qualified expenses
Deductions
Credits
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