Question
AOTC / 1098T, scholarships and actual tuition
Greetings,
My daughter received a scholarship from her university that covers half of her tuition costs. Annual tuition is $10,000. Her 1098T Box 1 shows $5,000, which is the actual amount she paid. Box 5 shows the scholarship amount of $5,000.
The TurboTax education summary for her shows the $5000 of tuition and $5000 of scholarships. But then it subtracts these from each other and on the Expenses and Scholarships (Form 1098-T) summary it shows $0 and says that she does not qualify for the AOTC (since she apparently didn't spend any money).
It seems that there is some confusion about "internal" scholarships that reduce the amount billed? Is this correct? How can I fix this?
