1098-T how to claim

My son received a 1098-T; he worked so he has some money to claim from a W2 (approx. $5000).  His line 2 of his scholarship 1098-T is less than his line 5 total.  He is a full time college student.  I'm using turbo tax 2010.  Do I enter line 5 scholarship total or line 2 amount billed by school or do I have to enter any of the 1098-T on his 2010 taxes?  In some tax info, it says if he's full time student, his scholarship is tax free, but you have to enter the 1098-T in turbo tax.  ??   it's a little confusing.  I'd appreciate your help.
    Cancel
    The 1098-T, per se, does not need to be entered anywhere. It is not a controlling document. If his scholarship (not including loans) exceeded his qualifying expenses of tuition, academic fees, books & course materials (but not room, board, transportation. student activity fees, insurance etc.); the excess is reported as taxable scholarship on HIS return.
    If the scholarship was not enough to cover  his qualifying expenses of tuition, academic fees, books & course materials; and the short fall was paid by you, him, any other family member or from  loans; you enter that amount on YOUR return (assuming he's your dependent) as educational expenses allowing you to claim the Education Credit.
    If you have no other records to go by and the 1098-T is all you have; you enter the difference between box 5 and box 2 as taxable scholarship income on his return. If box 2 had been bigger than box 5, you would enter the difference on your return as qualifying expenses.
      Cancel
      Contribute an answer

      People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

      1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
      2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
      3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
      4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
      5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.
      Cancel