One of my friend have received 2 1098Ts.....one with amount in Column 2, Box 7 & 8 checked. And other one is amount in Box 5.========>>>>>>>>>> If the amount in Box #5 ,your bud’s scholarships, is GREATER THAN the amount in Box 1 or Box 2, whichever is filled in on your 1098-T, then he cannot use any expenses to reduce his tax bill.he must report the excess as taxable income on his 1040. If the amount in Box #5 is less than the amount in Box 1 or Box 2, whichever is filled in on the 1098-T, then he can use the expenses as a deduction or credit. By subtracting Box 5 from Box 1 or Box 2. The difference is generally the amount that was paid out of pocket and that can be reported on his return. Box 7 is a check-off box to indicate if the billed amounts include any for the academic period
beginning January-March of the succeeding year of 2015. it says that expenses paid in 2014 for spring courses in 2015 CAN be claimed on your 2014 return
So while working in Drake how should I enter these 2 1098Ts as the he is eligible to receive the American Opportunity Credit as their income is lesser than the threshold limit and all other conditions are fulfilled but I am confused.Should I deduct the scholarship received in 2nd 1098T from the amount billed in 1st 1098T received? Please guide me through==========>>>>>>>>>> as mentioned above. I guess you need some tech advice from the software vendor perhaps customwer service. |