Hello! I am a former ATXer and am so glad to see this forum has been brought back! My question is pretty simple, but I can not find anything exactly on point, and see some conflicting info, so hoping for some input from the community.
If a taxpayers 1098-T reports both scholarships and grants, as well as qualified educational expenses, can the taxpayer ELECT to report the scholarships and grants as taxable income, in order to claim the education credit on the entire amount of qualified education OR - *MUST* the taxpayer first reduce the qualified educational expenses by the amount of the grants/scholarships received, and take the education credit only on the difference.
Input appreicated and valued. Thank you! Eliza
