Form 1098-T

[Kurly]

Hi Gang:

Client received The Form 1098-T, Box 2 $4,724.00, Box 4 $ 431.00, Box 5 $2,605 Tax free scholarship. What would be your opinion as to what would be the qualified amount to use for education credit?
I have heard many different opinions as to the $ amount to use. Some say all of Box 2, what about Box 4 others say subtract Box 5 from Box 2.

Thanks

Kurly

[taxmandan]

Hard to say,

Unfortunately the schools are not consistent with how they do it. I've seen box 2 'net' of box 5, and other times box 2 is the total tuition paid and needs to be reduced by box 5 amount. The latest one I saw detailed payment schedule on the bottom of the page and I could see that all of box 2 was paid by student and not with any scholarship money. Might try to get student/parent to tell you how much they actually paid out of pocket and use that amount.

Not sure what to do with box 4, this 1098T doesn't even say what that box is for, and it's blank.