@AmyC said:
If the parent qualifies for AOTC and claiming dependent:
What you should enter to get the credit.
Enter the 1098-T box 1 $4000 box 5 zero
What the student should enter:
Box 1 amount was $8300 but parent took $4000 this leaves $4300. Student will enter $4300 box 1
Box 5 full scholarship amount of $19000
I concur with that advice. If the student has some book and computer expenses, those can be entered to reduce the taxable amount. But it isn't necessary, in your case, as the current taxable amount $14,700 (19,000 - $4300 = 14,700) is less than the $15,750 filing requirement. Technically, he does not need to file a tax return. Some experts recommend that he do so, anyway, to document the reporting of the taxable scholarship amount that frees up the tuition that allows the parent to claim the tuition credit.
