Form 1098T - Scholarship/Grant taxable?

[Hamacher]

I have a client that recevied a Form 1098T and in box 2 (amounts billed for qualified tutition and related expenses) is $8,000 in box 5 (scholarships and grants is $23,000). Does this mean the difference of $15,000 is taxable?

Thanks in advance for your help!

[Lion]

Follow the Money!

You need to know how much was PAID. Have them give your the transcript from the burser's office or checks they wrote to the college or other detail of what they spent. Yes, the excess is taxable income.

[FEDUKE404]

Taxable income

Likely some taxable income.

But you can't put much credence on whatever is shown on any Form 1098-T.

BTW: This topic has been discussed ad nauseum on these boards. You may wish to use the "search" tool for more help.

FE

[Will]

I'd like to see the IRS eliminate the 1098T. Then we would be forced to check the billing statement to determine the credit. The 1098T's are notoriously wrong and yet I'm sure many preparers just subtract the two figures and use that for the credit.