I have a question about education expenses and the American Opportunity Tax Credit. My daughter received a scholarship from her school as well as a private scholarship. The private scholarship could be used for any school related expenses (room, board, etc) and was sent directly to her college.
The 1098-T form shows $40,515 in box 1 and $51,460 in box 5. It appears she has a surplus, but this doesn't take into account that her private scholarship was used to pay for room and board (which was about $11800 and it is a 15K scholarship), leaving us with a $862 tuition payment. Is there anyway to allocate these funds to reflect they were used to pay for room and board, so we can claim the $862 as a tuition expense? Thanks!
