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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!