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Deductions & credits
It depends, first off some to most scholarships can be taxable income. There is also a 1098-T requirement for most with limited exceptions, one being if students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships will not get one. Clarification is needed on what type of educational institution you are at, and if it's for credit towards a degree, and which credit you may qualify for; each has different expenses you may or may not be able to claim.
Form 1098-T requirement. To be eligible to claim the American opportunity credit or the lifetime learning credit, the law requires a taxpayer (or a dependent) to have received Form 1098-T, Tuition Statement, from an eligible educational institution, whether domestic or foreign. However, you may claim one of these education benefits if the student doesn't receive a Form 1098-T because the student’s educational institution isn't required to furnish a Form 1098-T to the student under existing rules (for example, if the student is a qualified nonresident alien, has certain qualified education expenses paid entirely with scholarships, has certain qualified education expenses paid under a formal billing arrangement, or is enrolled only in courses for which no academic credit is awarded).
If a student’s educational institution isn't required to provide a Form 1098-T to the student, you may claim one of these education benefits without a Form 1098-T if you otherwise qualify, can demonstrate that you (or a dependent) were enrolled at an eligible educational institution, and can substantiate the payment of qualified tuition and related expenses.
Exceptions. You do not have to file Form 1098-T or furnish a statement for:
• Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program;
• Nonresident alien students, unless requested by the student;
• Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships; among others
Eligible Educational Institution An eligible educational institution is generally any accredited public, nonprofit, or proprietary (private) college, university, vocational school, or other postsecondary institution. Also, the institution must be eligible to participate in a student aid program administered by the Department of Education. Virtually all accredited postsecondary institutions meet this definition. An eligible educational institution also includes certain educational institutions located outside the United States that are eligible to participate in a student aid program administered by the Department of Education. The educational institution should be able to tell you if it is an eligible educational institution. You could also try and request a 1098-T from the institution.
Type of program required Student must be pursuing a program leading to a degree or other recognized education credential for the American Opportunity Credit, expenses is necessary material and items needed for school bought elsewhere or at the school.
Student doesn't need to be pursuing a program leading to a degree or other recognized education credential, but must lead to further job skills, at the very least. for the Lifetime Learning Credit, but only tuition and required material bought from the school qualify as expenses, if necessary.
Check out this link for more info from Form 8863 Education Credits.
@Prisonwife
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