The school does not mail out the 1098T statements but they are available on his school account. I am so confused about proper reporting and don't want to get in trouble reporting this wrong. According to the tax publication, 970 page 15 says You may be able to increase the combined value of an education credit if the student includes some or all of a scholarship or grant in income in the year it is received.
I tried just putting in the information from the 1098 T but then I don' t get how to get the credit for the AOC if I input it this way.
I have on the 1098T statement 7708.00 box 5 and I have 3267.28 in box 1 for expenses. What I need to know is based on the tip above can I enter the 7708.00 as other income and then use the 3267.28 as my expenses to qualify for the AOC. This should give me the first part of the credit to reduce my tax due to 0.00 and then I would get the other part in the form of a refund.
For the AOC it also states to claim the credit the law requires you to have received for 1098-T. Since the school doesn't report them but they do provide a statement that is not mailed but i can print am i still able to take the AOC?
Also, as for the Credit side of the AOC it ask if your earned income was less than one half of your support. Technically his food shelter education was provided through grants. We did get some loans. lets say 4K for the year. Assume that would be considered support money? so half would be 2K. Is this correct? so if he earned 3120 then he can qualify then for the additional credit.?
Any help is greatly appreciated! Thank You. I tried asking a local Tax person and he was totally not aware of any of this. Said he never puts the 1098 T information on anyone's return? I was shocked because at the very least if you get more money awarded than expenses that is taxable.
