If Form 1098-T : box 2 qualified tuition exp. is 11,000 ; box 5 scholarships/grants is 16,000, where to input in Lacerte? If Form 1098-T : box 2 qualified tuition exp. is 16,000 ; box 5 scholarships/grants is 11,000, where to input in Lacerte?
We have always just left it off if scholarships are greater than the "Qualified" expenses shown in box 2. Room and board expenses are not qualified expenses and thus not eligible for the credit calculation. Scholarships, on the other hand, can be applied to room and board, thus resulting in scholarships reported in box 5 being greater than qualified expenses in box 2.
So in one case, tuition exceeds scholarship assistance. In the other case, something funny happened or years got bollixed or whatever, and the client actually got more in assistance than the tuition.
The first situation is easy: net the figures, and the tuition net of financial assistance is what goes in the input field for "spent on tuition" (or whatever it's called).
In the 2nd case, I'm not sure if you have to report the net as miscellaneous income (possibly on Line 21 of the 1040?) or if you just leave it off entirely.
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