Hello, I just received my daughters 1098T (the college had a glitch). I wasn't expecting for box 5 to be larger then box 1 so now I'm wondering if we are going to have to pay taxes on part of her scholarships. Box 1 is $19350.00. Box 5 is $21203. $2009.00 of that amount was given by the school as a res grant for staying on campus. $3525.00 of that amount is outside scholarships and says it can be used for tuition or room and board. The rest of the scholarship doesn't state how it has to be used. I've been reading a lot and I know there are a few loopholes but the more I read the more confused I get. Her room and board, of course, are not in box 1 but we did use her 529 plan to finish paying what the scholarship did not cover. I'm hoping we won't have to pay taxes on this amount but I was also hoping we would qualify for the AOC but that might not be possible because we used the 529 plan and I know you can't double dip. Can you please help?
