Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Suppose the student is a dependent on the parents' return. Any credit goes on the parents' return, even though the 1098-T is reported under the student's SSN. If there is scholarship income, does it belong on the student's return or on the parents' return?

The parents'. IMO you really need to do two things with these:

1. Get the college financial records so you can see exactly what happened. As you note elsewhere, the 1098-T is unreliable, except for the half-time student check box.

2. Work through Pub 970 to see how best to jiggle things, including all expenses, between the two returns. It can be to the family's advantage to report some scholarship income on the dependent's return, allowing the parents to claim a credit. For example, while room and board is never the basis for a credit or deduction, there are cases in which you can consider it a qualified expense for other purposes. It all depends on exactly who paid how much.

Phil
Rule Your Retirement Home Fool
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.