- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I am encountering some scenarios on College Students who received 1098-T with scholarships.
(1) 1098-T shows Box 1 $20K and Box 5 $15,811. That means net $4,531 have to be paid out of pocket. The student made $6K in part time income (over the summer) and we were going to file his return to claim back refunds $100-200. But now I am questioning if I should include his 1098-T in his tax returns or his parents? His parents have low enough income to qualify for AOC $2,500. The kid live away at school 5 hrs drive from home and his parents provided more than 50% of his support.
(2) College student Soc Sec Income $6K (from her mom's disability and will be last year she receives at age 18), dependent of his parents. Lives 3 hours from parents home at college. 1098-T Box 1 $22,925, Box 5 $12,000. Does she need to file a tax return? His parents income was too high to take advantage of AOC. I was not planning to file a return for her if it was just the SS benefits which she has been getting last few years.
What is taxable scholarship? Is it when scholarship in Box 5 is > than Payments for tuition Box 1 in Form 1098-T?
Thanks for your help. Appreciate it very much.
Best Answer Click here