Thank you very much. Please help me to understand this section since this is new to me. I'm still confused.
A. You haven't entered any expenses to off set the Box 1 amount. When the box 1 amount is NOT covered by expenses, all or part of the box 2 amount is taxable (not the box 1 amount).
Q. In order to entered expenses to offset the Box 1, I need to enter it in his "Expenses and Scholarships (Form 1098-T) correct? But, 1098T goes to the parent's tax, how can the student's off set the expenses? When I try to enter 1098T on my son's tax, I got the message on his tax return "It looks like you're trying to enter the education credits for yourself, but earlier you indicated that you were claimed as a dependent on someone else's return". It seems the 1098 T is counted to AOTC, and we can't double dip the expense in 1098Q. Then, how does the parent use 1098T?
