Q. $12,917/$16,267 =0.794 - so 20.6% is taxable; which is $8211.10 * .206 =$1,691.49 is taxable. Is my math correct?
A. Yes, basically. But we need to know how much is in box 1 of the 1098-T. Is the scholarship restricted (does it have to be used for/allocated to tuition)? Were there any book and computer expenses?
Q. $1,691.49 is taxable and goes on her return. If so where do I put it on her return?
A. It is just other income. TT will put it on Line 8z of Schedule 1 with the notation "Qual state (or private) tuition prgm from 1099-Q" if entered in the normal way. Getting it there can be a little tricky in TT. I'll provide details, and/or a work aound, on my next reply.
What other income will the student be reporting on her return? From what sources?
Q. Where would I find the amount used to claim AOTC ($4000) in our return? is it line 27 on 8863?
A. Yes
