Correct, the loan will not be added, only the interest under the student loan interest section.
As for the scholarships, look through the paperwork when granted to see what stipulations there are. Since the amount is greater than tuition, more than $5,000 of it has to have been allowed for room and board and other things. Smart kids get paid to go to college and the tax on the scholarship is much better than paying for college.
You only need $4,000 of tuition for you, if you qualify for the credit.
- Check to see if you qualify for any college credits. Currently:
- For the full credit, your MAGI (modified adjusted gross income) is less than $80,000 ($160,000 if you're filing jointly)
- For a reduced credit, your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you're filing jointly)
- There is no credit given if your MAGI is above $90,000 ($180,000 if you’re filing jointly)
- If you :
- qualify to claim education credit, your goal is $4,000 spent on tuition. Any scholarship beyond that goes to living expenses.
- don't qualify: Box 5 minus Box 1 minus the additional eligible school costs = amount to go on her return as scholarship income.
@jaybird84
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