Pacun Posted March 7, 2021 Report Share Posted March 7, 2021 Can I push a scholarship of 2K to the student so that the parents benefit for AOC? If yes, how can I do it properly on the student's return? Thank you in advance for your comments and/or instructions. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 7, 2021 Report Share Posted March 7, 2021 Yes, if the scholarship can be used for other than tuition/fees. Don't know how you do that in ATX. Basically, you apply the some of the scholarship to room & board or something other than tuition fees in your software's reconciliation worksheet. Your software will then move the excess scholarship that you didn't apply to tuition/fees to the wages line with the literal SCH. Now the student is paying tax on that 2K or however much the parents need to max out the AOC. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted March 7, 2021 Report Share Posted March 7, 2021 In ATX if you click on the W2 line a worksheet opens up wherein one may enter the amount deemed to be taxable scholarship. It then shows on the W2 wages line with the notation 'SCH' next to it. 1 Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 7, 2021 Author Report Share Posted March 7, 2021 Thank you Lion and Lynn. I was able to get the records of payments from the students and I see 14K paid by personal loans so no need for the taxable scholarship but I like the W2 trick. If they questioned the AOC I will show the loans amount and if needed I will amend. Thank you again. Quote Link to comment Share on other sites More sharing options...
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