Hello,
I am filing our taxes (married filing jointly with dependent college freshman, that's 19 years old - not required to file taxes as he only earned $1,007 with a summer job) and I am stuck on this question:
"How much of the $21,300.00 you received in Pell grants and scholarships do you want to allocate to room and board or other noneducational expenses?"
Here is the info I entered so far into each of the questions asked:
I filed my 1098-T form with box 1 = $18,839.88 (tuition) and box 5 = $20,300.00 (scholarships)
Did I pay for books or materials for school? YES
Cost of books and materials that you had to buy directly from the school: $85
Cost of books and materials that you didn't have to buy directly from the school: $429.19
Your 1098-T reported $20,300 in scholarships or grants. Did you receive any other scholarships or grants not reported on a 1098-T? YES
Enter the total amount of other Pell grants, scholarships, and fellowship grants you received for educational expenses paid: $1,000 (scholarship)
Do you want to allocate part of your Pell grants or scholarships to room and board or other noneducational expenses such as travel, research, or certain equipment? YES
How much of the $21,300 you received in Pell grants and scholarships do you want to allocate to room and board or other noneducational expenses? ????
***How do you figure this number? Or do I need to answer "No" above?
Also, I am confused about whatever number we enter in the Box in question, it says "If you enter an amount here, be sure to include it as income on Student's tax return" - does this now mean we need to file a tax return for our student as well? Or that depends on the amount entered? I believe $1,250 is the max of unearned income allowed before they would need to file taxes, is this accurate? And would it even be worth it if we need pay taxes on whatever amount this is?
I am trying to get the refund owed to us, not anything extra or unusual, I am just not sure the best way to answer this question and be accurate.
Please help if you can, I am about frazzled with this and no tax offices are taking new clients before the deadline. Thank you in advance.
More info about us:
I am married filing jointly (less than $160,000 annual income)
College student is 19 and only worked a summer job, we are claiming as a dependent.
All money received was scholarship money, no pell grants.
Actual cost of health fee, room & board: $4,944 (I know room and board aren't included in QEE I'm just trying to figure out exactly what amount to use here to get accurate results.
After all scholarships, we wrote a check to the university for $2,484 to cover the remaining room & board expenses.
