If you have a 1098-T, you may be able to get the Lifetime Learning Credit. If you do not qualify to claim the credit, see another post of mine for 3 different ways to enter depending on your circumstances here.
If your parents are not claiming you and you are eligible for the LLC- you want $10,000 of tuition expenses for the full amount. The LLC will be 20% of your tuition paid. Use the scholarship for room and board above the $10k tuition limit. For example:
- Box 1 $25k and box 5 is $40k.
- You need $10k for tuition, this leaves $15k available to be covered by scholarships.
- $40k scholarships used $15k for tuition, then remainder, $25k went to room and board.
Check form 8863 for education credits. Adjust numbers for room and board to maximize your refund. This is allowed. The IRS has a great brochure that explains how scholarships and tax credits interact.