Q. My son's return :I verified that the excess scholarships ($28,962 -$14,147=$14,815) is on line 8r.
However the summer stipend of $750 - (1099-nec) is reported on line 8z- Other Income. Did I enter the stipend correctly?
A. No. But, in his case it doesn't matter, as the tax comes out the same. He already had enough taxable scholarship (earned income) to get the full $12,950 standard deduction.
Q. Enter books and materials required to be purchased from the school. Could I enter the $1,013 out of pocket expenses here instead of 1098T and still give the same results?
A. Yes, but you would still have needed to modify the 1098-T. Otherwise, TT would apply the excess scholarship to books, not giving you the credit.
Q. Turbo Tax asks for the scholarships that my son received;" Did xx receive a scholarship or grant in 2022? If so, how much? Should I leave this blank since my son will report the excess scholarships on his return?
A. You answer that question, no. When you elect to enter a modified/adjusted 1098-T, you don't enter any additional numbers. Your adjustment of the 1098-T gives TT only the numbers it needs to calculate the desired result; in your case, use $1013 to calculate the AOTC. The AOTC is 100% of the first $2000 of qualified expenses and 15% of the next $2000.
