AmyC
Expert Alumni

Deductions & credits

I am simple. Work through the goals, no 1099-Q, get AOTC.

 

Let's start with the 1099-Q of $24,717. Subtract room and board $10,356 = $14,361 left to use on tuition. The 1099-Q is completely used on education expenses and does not need to be entered. Tuck it away. I don't see an over withdrawal.

 

Box 1 of 1098T shows tuition of $28,180 Let's subtract out the part paid by the 1099-Q of $14,361 leaves $13,819 to manipulate. We want $4,000 to be paid by the parents to claim AOTC. Sp $13,819 - $4,000 = $9,819 paid by scholarships.

 

Box 5 of 1098T is $13,600 and it paid $9,819 of the tuition money. This leaves $3,781 to cover other expenses. Books $67 and any other supplies would be subtracted from the $3,781 and the remainder will be scholarship income to the student.

 

W2 income $7385 plus scholarship income = $11,099 which is not required to file unless a refund of monies withheld is desired.

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