I received a form 1098-T from my college. It has 4326 in the box 2 for the amount billed for qualified tuition and related expenses. It also has 3600 for box 5 for grants. I believe the amount in box 2 is wrong...should be higher. I will admit that I did receive a few dollars back from the college when they refunded unused money but I used most of that to pay for a computer for my online classes and a camera for my photography class. They were required. Do I subtract box 5 from 2? Would I then put the equipment and the other amount that I did not receive back from the college as not reported on the form 1098-T and additional book and related materials boxes?
On H & R Block they don't ask all these questions.
Do not subtract your grant/scholarship amount from your tuition and related expenses. Read the small print at the bottom of 1098T- you are able to get the American Opp Credit for 100% of expenses up to 2,000 and 25% of the next 2,000. That means you will get the full 2500.00 if you paid more than 4,000 in qualified education expenses, that includes the computer, camera, etc. Note most schools do not include all of your expenses. Add your computer and camera expenses (and any others) to box 2. This will give you the maximum credit, but will reduce your taxable income and increase your return. It made a difference of 1,500.00 on my husbands return i did a few weeks ago. The school never includes all of your costs, you have to add them. Read the small print at the bottom of 1098-T
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