If you claim a Dependent who has a 1098-T reflecting Education Expenses (Box 1) that are greater than Grant/Scholarships (Box 5) you may qualify for the American Opportunity Credit. It doesn't matter if the expenses were paid by the student, or from loans/grants/scholarships.
The Box 5 amount is subtracted from the Box 1 amount to see the amount of Education Expenses you are claiming.
The credit amount is equal to:
- 100% of the first $2,000 of qualified expenses, plus
- 25% of the expenses in excess of $2,000.
- The maximum annual credit per student is $2,500.
Here's more info on the American Opportunity Credit.
@cmarchet45
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