Thanks for sharing that if 1098-T amount was less, the missing amount can still be entered when filing the tax return as other "qualified education expenses".
Now the question is about the amount paid for the dorm to the university for lodging and food ? Is that a "qualified education expenses" ?
For my older child - the university has included that amount. For my younger child - they have not. I can still enter it on the tax return. But I am reading in some places that room and meals don't qualify? Some guidance here would be appreciated.
EDIT:
Reading more from Carl - Thanks Carl - Looks like what is qualified education expenses is different based on source of funds - scholarship OR 529 plan or out of pocket..
" From earlier posting of Carl
1099-Q Funds
First, scholarships & grants are applied to qualified education expenses. The only qualified expenses for scholarships and grants are tuition, books, and lab fees. that's it. If there is any excess, then it's taxable income. It automatically gets transferred to line 21 of the 1040 with an annotation of "SCH" next to it.
Next, 520/Coverdell funds reported on 1099-Q are applied to qualified education expenses. The qualified expenses for 1099-Q funds are tuition, books, lab fees, AND room & board. That's it. If there are any excess 1099-Q funds they are taxable. The amount is transferred to line 21 of the 1040 with an annotation of "SCH" next to it.
Finally, out of pocket money is applied to qualified education expenses. The only qualified expenses for out of pocket money is tuition, books, and lab fees. Room & board is NOT a qualified expense for out of pocket money."
