Q. i mean the $15.5k is in total of what i made including the financial aid. so i made approximately 3k from working. Will i have to pay taxes on the full 15.5k or just the 15,500-14,600 (900)
A. Just the $900, at 10%.
Q. Also my mom is in the 12% bracket?
A. Then you want to use the "loop hole", so that she can claim the tuition credit. You'll pay about $480 more tax, but she should get up to $2500 ($1000 minimum).
The IRS actually encourages use of this technique. From the form 1040 instructions: “You may be able to increase an education credit if the student chooses to include all or part of a Pell grant or certain other scholarships or fellowships in income. For more information, see Pub. 970, the instructions for Form 1040 and IRS.gov/EdCredit". PUB 970 even has examples of how to do the “loop hole”.
