AmyC
Expert Alumni

Tax help for military filers

The 1098-T is used to determine education credit or taxable scholarships. However, $3000 in box 1 and $6,000 in box 5 does look like there could be taxable income. Please look at another of my answers for help  on manipulating numbers.

 

You may end up with education credit and taxable income. The credit goes on the return of whoever claims the student. The scholarship income goes on the student's return. If you are claiming the student, you goal is to claim any possible credit on your return. 

 

For the student, may just want to do this instead, See Where do I enter scholarship income?

 

It may be that neither of you need to paper file a return.  If questioned, you have the documents to back up what you claim.

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