Okay, not to be complicated, BUT, the "scholarship" amount in box 5 was not scholarships. It was payments paid directly to the college from a governmental agency for the blind. I just got off the phone with my son's college. They directed me to the Exceptions to 1098-T form on the IRS website, which states:
"Exceptions.
You do not have to file Form 1098-T or furnish a statement for:
Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program;
Nonresident alien students, unless requested by the student;
Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships; and
Students for whom you do not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between an institution and the student’s employer or a governmental entity, such as the Department of Veterans Affairs or the Department of Defense."
So , his payments were covered by a formal billing arrangement between his institution and a governmental entity. So does this mean he does NOT have to report that "scholarship" amount (which were actually just payments from Rehab Services for the Blind to his college) as income? We as the parents can still claim $4,000 for the AOTC but he wouldn't have to report the extra money as income?
