Hal_Al
Level 15

Education

If the assistantship is not reported to you on either a form W-2 or a 1099-Misc, you can treat it as tax free scholarship, up to $14,000. You can not claim the Lifetime Learning credit (LLC) because you did not pay with after tax money.

Alternatively, you can claim the LLC, but then you must treat $10,000 of the “scholarship” as taxable income.

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