AmyC
Expert Alumni

Education

Absolutely add all your tuition, books, required expenses and subtract the total of all your scholarships. The forms are not exclusive. You only pay taxes on the difference. Unless....... your parents  qualify to claim the AOTC, they may want you to include up to  $4k more so they can take the education credit on their return. The phaseout for  AOTC is:

$80,000-$90,000 or

$160,000- $180,000 MFJ

 

It is worth calling your parents and see if they qualify. If they do, they would get a lot more back than you would lose. They may be willing to pay any amount you owe for them to claim the excess. Of course, only the amount over $12,400 should be taxable.

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