Tuition

[oceanlovin'ea]

I have read all the previous threads on scholarships and tuition credits. Just want to make sure I have this in my brain correctly.

If the amount in box 5 which is scholarships is more than what has been reported as paid either in box 1 or 2, you need to ask person to determine what was actually paid to the school in their behalf either through the scholarship or personally for tuition, books, fees and other education related items.
Then the difference between box 5 and what was spent is taxable income. Is that correct?

If the parents are still claiming the student, is it taxable to them or to the student? Credits can be deducted by parent claiming student so I wondered about the income.

Thanks for the clarification.

Linda F

[ChEAr$]

You've got it!

I have read all the previous threads on scholarships and tuition credits. Just want to make sure I have this in my brain correctly.

If the amount in box 5 which is scholarships is more than what has been reported as paid either in box 1 or 2, you need to ask person to determine what was actually paid to the school in their behalf either through the scholarship or personally for tuition, books, fees and other education related items.
Then the difference between box 5 and what was spent is taxable income. Is that correct?

If the parents are still claiming the student, is it taxable to them or to the student? Credits can be deducted by parent claiming student so I wondered about the income.

Thanks for the clarification.

Linda F

The difference goes on line 7, as IF it were wages, for the student on his return.

And since scholarship pays everything, there is no tuition credit for parents.

[Gretel]

Last part of your question: The income is taxable to student no matter if dependent or not.

[oceanlovin'ea]

Thanks

everyone!
Right now, even things you know you know you don't know for sure. Forget the unusual things.

Back to work for me.

Linda F