That was helpful. The 1099Q form is straightforward enough. For the taxable portion of the scholarship, I put the numbers as listed on the 1098T, and it continues to say the whole amount is taxable. I did not take the American Opportunity Tax Credit on my return, because all of our payments were from a 529 (and that would be double dipping). I am putting a zero amount in the box on my son's form, and it continues to say that he does not qualify for the AOTC. When I look at the forms, it is listing his scholarship amount under line 1, earned income, instead of line 7 (which is where it should be, from my understanding in other posts I have read). From your response, it sounds like I should change what I am inputting on the 1098 and just list the taxable portion of the scholarship. Is that correct?
