topic Can I report my scholarships on my 1099-T as "Other reportable income" to get a larger American Opportunity Credit? in Education

Can I report my scholarships on my 1099-T as "Other reportable income" to get a larger American Opportunity Credit?

Matthew2 — Mon, 03 Jun 2019 20:39:31 GMT

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.

Unless your scholarship specifically says it must be used...

Bsch4477 — Mon, 03 Jun 2019 20:39:32 GMT

Unless your scholarship specifically says it must be used for tuition it is perfectly legal to use that scholarship for other purposes, declare it as income, and then claim the AOC.

Thank you, that answer was already extremely helpful. If...

Matthew2 — Mon, 03 Jun 2019 20:39:33 GMT

Thank you, that answer was already extremely helpful. If you know off the top of your head if Pell Grant is okay to write off as income, that would be helpful. If not that is totally fine I will look into it before finalizing my return.

Ask your school's financial aid office if it has limitati...

Critter — Mon, 03 Jun 2019 20:39:35 GMT

Ask your school's financial aid office if it has limitations of use.