Form 1040T

[iguana]

1040T shows 48K in box 2 and 46K in box 5.  Why when it asks what portion was used for room and board, the higher the amount entered, the more my tax goes up?  Why should anything on form 1040T make my tax go up?  I thought it was for the purpose of claiming a deduction or credit.

Thanks

[linear · Accepted solution]

Room and board is not a qualified education expense, so any scholarship money earmarked for that purpose becomes taxable. If the scholarship was used entirely for tuition and fees, do not designate any of it for room and board.

[iguana]

Why is box 2 greater than box 5

[linear · Accepted solution]

Box 2 reports amounts of qualified expenses billed by the school (not what was actually paid - it's up to you to verify that the same amount was actually paid). It's not unusual for that to be greater than a scholarship amount. Compare amounts to billing statements provided by the school.

[iguana]

Thanks so much !!