QuestionGuy101
Junior Member
What is the name of your state? California
If the amount of 'scholarships or grants' on Form 1098-T is greater than the amounts of qualified tuition and related expenses, I handle it in this way:
I deduct the total amount of qualified tuition and related expenses from the amount of 'scholarships or grants'. Then I deduct the amount that the student spent on books and other required course materials in 2006 from it too. Then I add the remaining amount to line 7 of the taxpayer's Form 1040.
For example:
'Scholarship or Grants' = 7,000
Qualified tuition and related expenses = 4,000
Books and required course materials expense = 1,000
I deduct the 4,000 and 1,000 from 7,000. The balance is 2,000.
Then I add the 2,000 to line 7 of the taxpayer's Form 1040.
Does everyone else handle the situation in the same way?
If the amount of 'scholarships or grants' on Form 1098-T is greater than the amounts of qualified tuition and related expenses, I handle it in this way:
I deduct the total amount of qualified tuition and related expenses from the amount of 'scholarships or grants'. Then I deduct the amount that the student spent on books and other required course materials in 2006 from it too. Then I add the remaining amount to line 7 of the taxpayer's Form 1040.
For example:
'Scholarship or Grants' = 7,000
Qualified tuition and related expenses = 4,000
Books and required course materials expense = 1,000
I deduct the 4,000 and 1,000 from 7,000. The balance is 2,000.
Then I add the 2,000 to line 7 of the taxpayer's Form 1040.
Does everyone else handle the situation in the same way?