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January 24, 2023
Question

If I didn't get my 1098t tax forms from my school, how do I claim education expenses? Do I have to put in my scholarships and grants?

  • January 24, 2023
  • 2 replies
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2 replies

Employee
January 24, 2023

You can usually get that form online from your school. 

Hal_Al
Employee
January 24, 2023

If you didn't get a 1098-T, TurboTax will ask, in the education section, if you qualify for an exception.  Answer yes and TT will allow you to enter expenses.

Yes, scholarships need to be entered.  You may not claim expenses, for the credit, that were paid for by tax free scholarship.

 

There is a tax “loop hole” available. The student reports all his scholarship, up to the amount needed to claim the American Opportunity Credit (AOC), as income on his return. That way, the parents  (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.

Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return.

Books and computers are also qualifying expenses for the AOC. So, extending the example, the student had another $1000 in expenses for those course materials, paid out of pocket, she would only need to report $5000 of taxable scholarship income, instead of $6000