Hi Hal,
I've moved on to completing our (parents) return which has created another question.
1) You indicated on the last email that Blake would use the $4,000 American Opportunity Credit; therefore leaving him $428 of taxable scholarship. Rather than Blake claiming the $4,000 Credit, is it reasonable for him NOT to claim it. Then he would have more expenses ($14,572 QHEE) than his $11,000 scholarship. So there would be $0 taxable. The only taxable income would be from his W2 of $2,281. Since that is less than $12,550 then he is not required to file.
2) On our return (parents) we could then claim the American Opportunity Credit.
Is this how it works? This is the first year I'm working with the 1099-T and 1099-Q forms and this process is confusing to me.
Thank you!
Carol
