I'm a graduate assistant which pays for a set amount of credits a year. Is the cost of each credit supposed to count as taxable income? I'm so confused!!!

[bookfed · Accepted solution]

Hello, I'm not sure if our situations are the same, but perhaps this may help. I'm a doctoral student and have worked as a teaching assistant at my university. In addition to a stipend for teaching, I earn a "work waiver" for tuition remission (credits). This amount, i.e. what I would have paid for tuition, is reported by my university on Form 1098-T (Tuition Statement) under the Box 5 (Scholarships and Grants). In the explanation section of this form, it indicates that this amount may reduce the amount of any education credit or deduction you may claim for the year. It says to see Forms 8863 or 8917 for how to report these amounts. I would suggest using these forms to figure out how credits for tuition may affect your personal tax situation.

[wes1walton]

That is the answer I needed, but disappointing as I'm still a dependent. If anyone else is reading this question, you can only count that form if you are not claimed as a dependent on someone else's taxes.