Education credits

[JG EA]

I know this subject has been discussed thoroughly, but I find a block in fully understanding.

Assuming the student actually spent some money for room and board and tuition. Are these two statements correct?

1.Student has equal amounts of scholarships and tuition. Student can say some of the scholarship money went to room and board because the scholarship allows this. Student then shows more tuition. The parents can claim the tuition as a deduction.

2. Student has $500 more scholarships than tuition. Student can say some of the scholarship money went to room and board because the scholarship allows this. Student then counts $2000 as taxable on his own return. The parents can claim the tuition as a deduction.

[Jesse]

I think you are okay for the hope or lifetime credits. But in order to take the tuition deduction the parents must have paid the tuition.

[JG EA]

Thanks for your reply!

Bear with me here. So if in #2 there was $500 taxable because the Scholarship paid $500 more than tuition, and no money came from the pocket of the parents or the taxpayer for room and board or tuition, there would not be any credit available for anyone because no one spent any money correct?

[Jesse]

Thanks for your reply!

Bear with me here. So if in #2 there was $500 taxable because the Scholarship paid $500 more than tuition, and no money came from the pocket of the parents or the taxpayer for room and board or tuition, there would not be any credit available for anyone because no one spent any money correct?

If any of the $500 went toward books or supplies required for classes it would decrease the taxable amount.