Hal_Al
Level 15

Education

The way to do it is: when your are asked how much of the scholarship was used for room & board, enter the amount you want to be taxable. Example $5000 in box 1 of the 1098-T and $6000 in box 5.  In order to use $4000 of tuition for the AOTC, you need to say that $5000 of the scholarship was used for R&B. 

Books and computer costs can reduce the amount you have to declare as taxable.

 

I assume you are otherwise eligible; over 24 and not your parent's dependent or supporting yourself with earned income.