AOTC Credit with 529(1099Q), Pell Grant and Institutional Pell Promise award

[Mls15]

My Student Has for 2024:

$6912  Qualified tuition Fees

$7929 Room Board

$1128 Computer and Books

The 1098 T shows $5794.97 box 1

                                 $7718 Box 5 which is composed of:

                                                  $370 Pell Grant

                                                  $7348 Pell Promise award  , School said wasn't restricted to qualified even though calculation of amount student received is to cover qualified tuition/fees not covered by federal grant(is federal Pell grant and Pell promise(Institutional Award per School) restricted to qualified expenses for purpose of applying it to cover room and board for AOTC?

The 1098T did not include $1,116.87 of qualified mandatory fees in box 1 that my student paid in 2024

The 1099Q has $3630 Box1

                             $504.97 Box 2

                             $3125.03 Box 3

I entered the 1098 T and 1098 Q on parent return as is, but adjusted the 1098 T tuition to $6912 in turbo tax input box under 1098T box 1 to reflect amount of mandatory fees and tuition actually paid.

I entered $7929 Room and Board and $1128.83 Computer and books but can't find where it was entered on parent return(it shows in total of "Other Education expenses(for all schools) in education summary in turbo tax). When asked by turbo tax " Did student receive a scholarship or grant", i said yes, and when asked if any scholarships were used to pay for room and board, i entered $3677. 

Turbo tax then said $3677 was taxable on the student return.  Turbo tax calculated that parent got $1500 on line 20 form 1040, and $1000 on form 1040 line 32

Below is what entered on Student return:

I entered the 1098T and 1098 Q on student return, as is, but adjusted 1098T tuition to $6912 in turbo tax input box below box 1 form 1098 T "enter the tuition paid" to reflect total mandatory tuition and fees paid

   When asked if parent took education credit , said yes

   When asked if paid room and board with a scholarship , said yes, and used $3677 to pay room and board with scholarship in turbo tax

Student had no other income, Federal tax ended up $0 in turbo tax as $3677 was on 1040 line 8 in turbo tax, and std deduction/itemized deduction was $4127

Did i enter correctly on parent and student return?

Do i have to file the student return?

Can i claim the pell awards as paying for room and board?

Thank you

[RobertB4444]

Yes, you entered it correctly.

No, you don't have to file the student return because their income is below the level to require a return.

Yes, as long as they were allowed to be spent that way.

@Mls15 

[Mls15]

How do i find where the computer and books were entered in "other education expenses(for all schools)?

Are Pell grants always unrestricted?

[Hal_Al]

Q. Did i enter correctly on parent and student return?

A. Yes.

Q. Do i have to file the student return?

A. No. But you may want to, to document the reporting of the scholarship income. It is not mandatory. 

Q. Are Pell grants always unrestricted?

A. Yes.

Q. How do i find where the computer and books were entered in "other education expenses(for all schools)?

A. Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to  "Other education  expenses"

[LindaS5247]

You can get back to the screens where you enter you education expenses as follows:

1. Click on the search icon
2. Type "education expenses" in the search bar
3. Click on the link "Jump to education expenses"
4. Continue through your screens to the one that says "Now let's gather Your Additional Education Expenses"
5. Select "Continue"
6. The next screen will say, "Did You Pay for Books or Materials to attend school?"
7. Answer all follow-up questions

[Mls15]

Thank you

[Mls15]

Thank you