Need help on 1098-t???

[helptax]

One of my clients has 1098-t and box#2 8845 and box#5 10371. Box#7 marked and box#8 marked too. How do I have to take care this?

[Brad Imsdahl]

One of my clients has 1098-t and box#2 8845 and box#5 10371. Box#7 marked and box#8 marked too. How do I have to take care this?

Box #2 for $8,845 shows the total amounts billed for qualified tuition and related
expenses less any related reductions in charges.

Box #5 for $10,371 shows the total of all scholarships or grants administered and
processed by the eligible educational institution. The amount of scholarships
or grants for the calendar year (including those not reported by the institution)
may reduce the amount of any allowable tuition and fees deduction or the
education credit you may claim for the year.

Box #7 shows whether the amount in box 1 or 2 includes amounts for an
academic period beginning January-March 2007. See Pub. 970 for how to
report these amounts.

Box #8 shows whether you are considered to be carrying at least one-half the
normal full-time workload for your course of study at the reporting institution. If
you are at least a half-time student for at least one academic period that
begins during the year, you meet one of the requirements for the Hope credit.
You do not have to meet the workload requirement to qualify for the tuition
and fees deduction or the lifetime learning credit.

[ChEAr$]

Also

be aware that scholarship funds used in excess of allowed expenses are taxable
income.

[Chief]

1098t

You need a good tax software program like Tax Slayer Pro or Drake. You need adequate reference and research books like TaxBook to name one.Seminars to update your skills.

[Joe Btfsplk]

1098-T, Box 5 Income.

be aware that scholarship funds used in excess of allowed expenses are taxable
income.

I just finished a return with an amount in box 5 and nothing in the other boxes. I put it on line 7 as scholarhship income. I didn't want to waste the time to research this so I decided that this would get it reported and, since the person had no other income except Social Security disablity, he will owe no tax for 2006 with or without the 1098-T, Box 5 in income.