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mojo03
Returning Member

1098T in a different state

We are residents of NC. My college age daughter attended a  fully funded summer program at a University in Michigan. She received a 1098T from this university with $2700 in box 1 and $3900 in box 5.  Will she need to file a Michigan state tax return in addition to her NC state return? Is it possible to take the $1200 in non qualified expenses on this 1098T and put it toward qualified expenses at the university that she attends full time, making the $1200 non taxable? We have been planning to file federal taxes even if it is not mandated becuase she had some federal and NC state taxes withheld from her summer job. Thanks

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1 Reply
AmyC
Expert Alumni

1098T in a different state

1. No return is required in MI due to the income level. MI-1040 Book

2. Yes, you can apply the expenses to the other college so it is not taxable.

3. Scholarship income is a hybrid income and can trigger the kiddie tax when she files. What is the Kiddie Tax? 

  • Scholarship income is a hybrid of earned income and unearned income.
  • Earned income  for purposes of the filing requirement - Single $12,950 
  • Earned income for the  dependent standard deduction is earned income + $400 
  • Unearned income for purposes of the kiddie tax and other 

 

 

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