My son (a dependant) on my tax return is subject to the following scenario on his 1098T, below are actual numbers and I can tie them out, I do not know how to enter this into Turbo Tax.
My sons scholarship is 86%, I paid 14%. His scholarship is a blanket % applied across the board to all fees, tuition, room & board as agreed on his signed financial aid offer. I believe I do not have to pay tax on the entire difference between Box 1 and Box 5 when I have paid approx 7K out of pocket that applies across the board as well. Therefore, some of my out of pocket applies to Qualified expenses when I allocate the scholarship across all categories of expenses & fees.
Please explain if I am correct/incorrect and how I would go about entering this information into Turbo Tax.
Thank you so much!
Jeanne
| | | | Allocation | Amount |
| | Total Cost | Scholarship | of Scholarship | Paid by Us |
| Qual Exp. Box 1 | $ 33,807.54 | 86.02% | $ 29,081.13 | $ 4,726.41 |
| Non Qual Fees | $ 595.67 | 86.02% | $ 512.39 | $ 83.28 |
| Room & Board | $ 16,624.67 | 86.02% | $ 14,300.48 | $ 2,324.19 |
| Totals | $ 51,027.88 | Box 5 | $ 43,894.01 | $ 7,133.87 |
