1098-T Entry w/ Scholarship To Ensure Education Credits Captured

The student CAN claim an education tax credit, but only if the parent(s) do NOT claim the student on their return.  If the parent claims the student as a dependent, the credit can only be claimed on the parent's return.  To claim the credit on the student's return:

• Indicate in the Information Worksheet that the student/taxpayer CAN be claimed as a dependent
• When entering the Form 1098-T, under the Student Information, indicate that the student is the taxpayer.

There is no deduction or credit available for room and board, books, and supplies (unless paid as a requirement of enrollment). 

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@troy wrote:

 

Claimed as dependent on parent return.

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If the student is claimed on the parents' return, the student does NOT qualify for any education credits.

If the parents' income qualifies, they MIGHT be able to claim the credit, if ADDITIONAL scholarships are made taxable on the students return (if they are allowed to be used for non-tuition).