Q. Does my grand daughter report this on her taxes?
A No. But you may need to report it on your taxes, as income because "The amount on the 1098-T is just slightly less than the 1098-Q amount".
But, probably not. We need a lot more info to decide that. In most cases, you can just ignore a 1099-Q, but that may mean the parent's may give up a generous tuition credit or erroneously claim too much credit. There has to be some coordination between you.
Q. Does my grand daughter report the 1098-T on her taxes, and if so, is it a deduction or income?
A. It's a tax credit, not a deduction. But whether she gets to claim it depends on whether she is a dependent or not and how much of the 1098-T is needed to cover the 1099-Q (on your taxes).
Provide the following info for more specific help:
- Is the student the parent's dependent.
- Box 1 of the 1098-T
- box 5 of the 1098-T
- Any other scholarships not shown in box 5
- Does box 5 include any of the 529/ESA plan payments (it should not)
- Is any of the Scholarship restricted; i.e. it must be used for tuition
- Box 1 of the 1099-Q
- Box 2 of the 1099-Q
- Who’s name and SS# are on the 1099-Q, grandparent or student (who’s the “recipient”)?
- Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents.
- Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers
- How much taxable income does the student have, from what sources
- Are the parents trying to claim the tuition credit (are they eligible, income under $180K filing jointly, $90K single)?
- Is the student an undergrad or grad student?
- Is the student a degree candidate attending school half time or more?
