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January 30, 2022
Question

Should I put the total amount of tuition paid to the school in 2021?

  • January 30, 2022
  • 1 reply
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My 1098T shows in box 1 $30,000.  In box 5 it shows $45,000 in scholarships and grants.  Under box 1 there is a circle that says 'This is not what I paid the school'.  Full tuition including tuition, fees , room and board was $45,000.  Do I click on the circle and out in the corresponding box the full amount the school was paid in 2021(the $45000)?  Also,  I am being asked if any part of my aid or scholarships were included on a W-2?  I earned $3800 in Federal work study in 2021.  Should I enter this amount?   I did receive a W-2 for work study.  Please help.  I am no longer a dependent, filing on my own for the first time.  Thanks

1 reply

Hal_Al
Employee
January 30, 2022

Q.  Do I click on the circle and out in the corresponding box the full amount the school was paid in 2021(the $45000)?  

A.  No.  Box 1 is only for tuition and fees.  It does not include  room and board or books.

 

Q.   Should I enter the $3800 on my W-2 for work study where it asked if any part of my aid or scholarships were included on a W-2? 

A. No.  That is only if you know for certain, that there is a duplication of the W-2 and 1098-T (a rare situation).

 

The $15,000 of scholarship  that paid for Room & board is taxable income to you.  TurboTax will automatically handle it as such.

 

A separate issue: nothing in your post suggest that you are no longer your parent's deponent.  

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

  1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
  2. He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
  3. He lived with the parent (including temporary absences such as away at school) for more than half the year

 

So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf