I noticed that if you made more in scholarships and grants on your 1099-T you will not get an American Operating Credit. I noticed that if I report my Scholarships and Grants as income it will count my aid as being $0 and I will get a huge refund from the American Opportunity Credit. Is this illegal?
I already have a 1099-T showing I made more in scholarships and grants then tuition, but if I report it as income I get a huge tac credit since they think my aid was $0 then.
I reported my scholarships under "Other reportable income" then in the deductions section under my schools deduction I still reported the 1099-T form with the scholarships on it as it was sent to me, but when they ask if I already reported my scholarships as income I say "yes" and i put that i reported 100% of my scholarships as income. This gives me a huge refund from the American Opportunity Credit. Is this illegal and will it get my audited. I only made around $30,000 working this year, but I am also a full time student, and received a near $15,000 in scholarships. My tuitions was much lower in the scholarships.
