Education

So it sounds like you have a situation something like this.

Student attended fall semester, tuition was $7700. Received $5000 scholarship, parents paid $2700.  Student did not attend in Spring, but the 1098-T shows $10,000 of scholarship (assuming fall and spring semesters.)

The 1098-T is advisory, you can report your own actual expenses that you can prove with your billing statements from the college.  However, if the school does not issue a corrected form, the IRS may send you a letter of inquiry.  You would respond with a letter enclosing documents proving what you actually paid.  In the example above, you would report $7700 as tuition actually paid, and $5000 as the non-taxable scholarship, leaving $2700 paid from your own funds that would be eligible for any tuition credits that you qualify for.

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