Education

Here are more links and answers! I have tons of links but try not to overwhelm. The Form 8863 is where it all goes. Maybe seeing how it goes together will help. The education link worked when I clicked on it from the messages. Maybe it was a temporary error?

Questions 1, 2, & 3 All go to worksheets running behind the scenes in the program. You are overthinking this. Think basic. College education expenses of $10,000. Scholarships of $5,000. Who is left to pay the difference, you! You would get credit for the difference.

MOST important step and link for now     Question 4. This answer will be derived as you ***** look at another of my answers for help.*****  since, the IRS lets you move the numbers around some to get you the most benefit. You will be able to see if there is anything left taxable to your student. For example: Child gets a $70,000 scholarship and has $25,000 in education expenses. The child will claim the difference as income- on their personal tax return. Yes, it happens. Usually, the numbers require a mental workout instead. 

Question 5 & 6. The Tuition Summary worksheet marks the qualified expenses and checks off which credits you are entitled to receive. Then, the program has an optimize button which will compare the deduction and the credit. The program will tell you which is best and why.

Comment: You mentioned a change. Yes, the 1098T used to be informational. Now, it is an official tax document.

Qualified Expenses

Qualified College

Available Education Credits

IRS Q & A about education credits

Tax Benefits for Education: Information Center

About Form 8863, Education Credits

Follow these steps:

1. Did you pay for books or materials to attend school? Yes
2. Enter related amounts, tuition may say $0
3. Continue
4. Scholarships and Financial Aid, continue
5. Did you get a scholarship? yes and fill in boxes or no
6. Continue
7. screen asking Four Years of College Credit Before 2019? answer yes or no
8. Continue
9. Is this First Year of College? answer yes or no 
10. Continue
11. Ever Receive American Opportunity or Hope Credit? answer yes or no
12. Continue
13. Felony drug conviction? yes or no
14. Continue
15. Education Expenses Summary, EDIT

@connexcindy2016  Good luck!