@MK151
Q. Does that mean that the amount in box 5 can be split however is convenient between the parents and student tax returns when reporting 1098 T?
A. No. it means the box 1 amount (the qualified expenses) can be split any way you want, for the best tax result.
Q. Do the parents use the whole amount in box 1 to claim the educational credit?
A. Usually no. If box 1 is less than $4000, then yes. $4000 is the maximum amount of qualified expenses needed for the maximum amount of American Opportunity Credit
Q. If the parents use all the box 1 amount on their return, does the student enter 0 in box 1 of the 1098-T, or leave it blank.
A. Yes. That is the easy way to do it. But, it's actually a workaround.
