KrisD15
Expert Alumni

Education

Insurance is not an education expense, but you can enter it under Medical Expense. 

 

Why do you want to report the Room and Board expense? The education credits cannot be based on room and board expenses. 

The TurboTax program will ask for room and board if there is also a 1099-Q entered to offset the distribution. 

Scholarship funds used to pay room and board are taxable funds, so Room and Board is irrelevant for credits and does not offset tax on scholarships.

UNLESS you want to allocate scholarships to room and board in order to have more tuition, fees, books and supplies for an education credit. 

 

SO

If you want the scholarships applied to tuition only, don't worry about room and board. Any excess scholarship will be taxable regardless. 

If you want to use scholarship for room and board so the student has expenses to allocate to a credit, subtract as much of the room and board as you want from Box 5 when you enter the 1098-T. Then enter that same amount as Other Income with SCH as the description. 

It is helpful if you understand what you're doing. 

IRS Pub 970 is quite helpful. 

Remember that the American Opportunity Tax Credit may only be claimed 4 times per student, no matter who (you or the student) was the taxpayer who claimed it.

IRS Pub 970

 

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