We claim our son as a dependent on our tax return and he files his own taxes. His college didn't calculate his scholarships correctly. They will not reissue the 1098 and told me I can use my own calculation by adding up the scholarships from his bills. I did this and included all scholarships and TAP that he received (in NYS).
My question is based on my calculations since the 1098-T is incorrect, if Box 1 of his 1098-T is $9,711 and Box 5 is $8,398.26 but includes scholarships for $7,500 that can only be used for non-tuition expenses (but can be used for fees & books) and another is earmarked just for housing. So, a majority of the scholarships cannot be used for qualified expenses. Since Box 5 is less than Box 1, does he need to claim any of the scholarship money as income? If so, can he subtract the fees ($2,641.50) since they are a qualified expense, bringing the taxable income down to $4,858.50 for his taxes?
For the AOTC Credit on my taxes, I entered $9,711 for qualified tuition and expenses, $700 for books, and $8,398.26 for scholarships. This gave me a $2,000 credit. I'm hoping I entered this correctly?
