I received this 1099-T form. Box 1 is not empty. Box 5 contains the whole amount and does not separate tuition, which is not taxable income, and room & board, which is taxable.
Besides this fact, I am looking into bills and see that total balance for the Fall Semester is equal to the number in the Box 5, but the actual amount used was less, and she had an refund almost $1000 (985.25) which was credited to her checking account and spent for the life in the Campus - food, some dress, and e.t.c.
So what number I have to report on my Tax return - the one in the 1099-T Box 5, or the actual amount used from the the Univ financial Statement, and the excess in the amount of the refund goes to her TAX return?
And how to separate education from the room & board? There are two parts: Part 1 "Payments received for tuition" and Part 2 "Scholarship or Grants".
Part 2 is exact number from Box 5. Does it mean I have to substruct Part 2 - Part1 = "Room and board" and it will be taxable?
Or Turbotax will do this by itself, and I do not have think about it? I am afraid to start without firm understanding. I already put the rest of the info into Turbotax and do not want to corrupt the algorithm.
Thank you!
