No 1098-T, Scholarships exceed QEE

Forum|Forum|5 years ago
April 14, 2021
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We are planning to claim our daughter as a dependent. She does not receive a 1098-T from the school because she has a full scholarship. When I plug the info in on our tax form it says it is income for my daughter. I understand that part is income because it is above and beyond the QEE, but I don't know if we're getting the Opportunity credit for her. She also has a 529. Can someone help? I understand there is some kind of loophole where you can put part on ours and part on hers so we can get the credit, but I'm not understanding the examples since they are for situations without full scholarship. Thanks!

AmyC

Employee

If her scholarship covers tuition, room and board plus spending money, it will be impossible to get the AOTC deduction. In this case, your daughter would not be needing the 529.

If there is any chance of wiggle room, see my 529 example and information on 529 expense withdrawals.

As for the scholarship, you can make more of it taxable to her and may be able to claim the credit, please look at another of my answers for help.

Feel free to respond with more information if you need more help.

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