Hello, I have read a lot of information about this topic,but my situation is very specific.
Last year my daughter received approximately 15,2K in scholarship and grants. Form 1098-T is showing box 1 as payments received of $11,9K. Her actual tuition for 2018 was $13,8 K. And because her grants/scholarship for 2017-2018 was less then 2018-2019, we had to pay $1800 out of packet for Spring semester of 2018. Payment was made in December of 2017. Because they grant scholarship/grants on semester base-her spring semester scholarship was smaller, and fall semester was higher. In Fall semester of 2018 we received a refund of $3,300. I have the following questions:
1. Cash payment of $1800 was not included on the form 1098-T because technically it was made in December of 2017, but for Spring 2018. Did the university do it right? Since we have excess of scholarship of $3300,can I deduct that $1800 from the taxable amount?
2. I do not remember exactly where did we report 1098-T form- on her tax return or mine. I believe there is a question in TurboTax online if someone claims her as a dependent and that eliminates her option of entering that form. Tax documents don't have records of that form being entered anywhere. I know for sure we did not claim any additional income(that $3300). So I am looking into amending the taxes, but don't know who's should I amend as I'm not sure how to determine where the form was entered. We claim her as our dependent. Who this additional income should be reported by-by her or us? She made $4,300 working during summer. If she reports that additional $3,300, that leaves her under $12,000 tax paying requirement- is there even a point of amending them since she will not owe any taxes?
3. If us (parents) or she has to report that leftover money we received-how much I should report? We spend approximately $1000 for books and other supplies (qualified). She lived with us and I know that room, and transportation is not qualified expenses. I don't have receipts from school or stores for each purchase. Can I still deduct this amount from total and not include it in income? If I am able to deduct $1000 spent for supplies, and if the $1800 we prepaid in cash can be counted towards tuition for 2018, we have left $500 as income. Should I bother reporting it on amended form?
Thank you.
