KrisD15
Expert Alumni

Education

First, I suggest you compare the 1098-T to the students school statement to ensure scholarships posted in 2024 were not for tuition billed in 2023. 

 

If those numbers are correct, no, you would not be eligible for an education credit UNLESS you had the student claim part of the scholarships and in turn used the "Freed-Up" expenses toward a credit.

 

The 1875 scholarship, if used for education expenses (Tuition, fees, books, supplies) is not claimed and not taxable.

The 1875 scholarship, if NOT used for education expenses (Tuition, fees, books, supplies) Must be claimed by the student as taxable income.  Whether it is taxed depends on the students other income.

 

There is a 27 difference between Box 1 and Box 5 which would be income for the student, unless they purchased books and/or supplies outside of the school, which I assume they did. 

 

Pub 970 is pretty easy to read and shows great examples. 

 

If you enter the 1098-T into your TurboTax program, since you claim the student, the program may suggest the best way to handle the expenses and scholarships. It MAY suggest the student claim scholarships so you get a credit.

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