College Education credits

[Lion]

If the scholarship by contract is limited to paying tuition, then you apply it there. If the scholarship has no limits on it's application, try applying it to room & board and such to save the tuition/fees to use for an education benefit.

[CVTax]

So you're saying a person with qualifying education expenses can simply "decide" the scholarship funds did not first go toward those qualifying expenses (shown somewhere on Form(s) 1098-T) but instead went to pay the NON-qualifying expenses, such as room and board and thus becoming taxable income? Some income, higher "unreimbursed" qualifying expenses generating education tax credits?

Are you SURE you can do that? ? ? I seem to recall somewhere in the distant past that such an end run was not an option.

Also, could that not become an issue for "who" provided >50% of the student's support ? ?

And for those with the "rich clients" would not the creation of the "phantom income" likely trigger due to the taxable scholarship income some Kiddie Tax (Form 8615) issues for said well-off parents?

Tell us more. . .

FE

See the link in my post #3.