Tax_Dumb_Dumb
Returning Member

1098-T: How to Answer TurboTax Q's When Box 5>Box1

Hi- I need help answering some of the questions in TurboTax relating to education expenses.  I feel like I'm double counting, but I'm not sure.

FACTS:

- One child claimed as a dependent.  He's 22 and was a full-time student the entire tax year.

- Child has no other income to report.

- He received the American Opportunity Credit for the past 3 years (which I am uncertain now if I did the tax forms correctly, hence the questions below).

FUNDS:

   $12,500  1098-T Box 5 (no other scholarships/grants received)

   $  7,500  1098-T Box 1

   $  5,000  Net 1098-T

   $13,000  Loan proceeds sent directly to school from lender

   $18,000  Total funds received by school

   $ (500)  Materials Fee- deducted by school before refunding student unused funds

   $ (600)  Other Fees- deducted by school before refunding student unused funds

   $16,900  Unused Funds- refunded to student

In addition:

   $800  Total cost for books/supplies/etc paid for by student using the unused funds that were refunded.

   $9,000 Total paid for apartment rent

HOW DO I RESPOND TO THE FOLLOWING QUESTIONS IN TURBOTAX?:

1.  Books and materials required to be purchased from school ___________.  I was thinking $1,100 (materials fee + other fees above).

2.  Books and materials NOT required to be purchased from school ___________.  I was thinking $800.

3.  Total used to pay for room and board with a scholarship or grant ___________.  I was thinking $5,000 (the net 1098-T amount above).

 

I appreciate your help!