Thank you!
First I want to confirm that I understand your example. The loop hole requires splitting the data on the 1098T between the parent and student's tax returns as follows:
1098T Parent Student
Box 1 8,000 4,000 4,0000
Box 5 10,000 -- 10,000
Income 2,000 -- 6,000
Correct?
Then in order to use the look hole the school's billing statement should NOT show the scholarships applied to tuition. In my situation, the billing statement shows:
1. Scholarship A (not specifically applied to tuition)
2. Scholarship B (specifically applied to tuition).
While Scholarship A is not applied to tuition on the billing statement it is in fact a tuition only scholarship. In this situation I don't think I can use the loop hole. Do you agree?
