taxbrewster Posted April 8, 2008 Report Share Posted April 8, 2008 Quick question - Student T/P has 17250 in scholarships (box 5) and 13545 in qualified expense (box 2). Nothing else. He wants to show 3705 as income on LN 7 of 1040, therefore qualifying him for $300 from the feds and fill a state return owing $12? OR should i just not even brother, will this create a problem in the future. Thanks, to everyone that supports and helps this community run!! Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 8, 2008 Report Share Posted April 8, 2008 What state are you in? Quote Link to comment Share on other sites More sharing options...
taxbrewster Posted April 8, 2008 Author Report Share Posted April 8, 2008 Michigan Quote Link to comment Share on other sites More sharing options...
zeke Posted April 8, 2008 Report Share Posted April 8, 2008 What state are you in? confusion! Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 8, 2008 Report Share Posted April 8, 2008 Michigan I think that after you update your profile and add your state to it, a lot of answers will come your way. In order to make the scholarship taxable, you need to know how the money was spent. Most states have a low income credit and you might not need to pay the state. Quote Link to comment Share on other sites More sharing options...
taxbrewster Posted April 8, 2008 Author Report Share Posted April 8, 2008 Ok, i guess i was not clear. I think he has to declare the income because he is no longer in "school", but the university treats him as he is, that is why a 1098-t was issued. The scholarship is income that is earned while he works at the clinic at the school. However he is graduated and collects a check everyweek (in 2007). Was not issued a 1099-misc or w2. The money was spent for living expenses. Just as if he was working. Thanks. Quote Link to comment Share on other sites More sharing options...
LindaB Posted April 8, 2008 Report Share Posted April 8, 2008 I think you should read in Pub. 970 and see if any of is really taxable, and not just do it or not because he wants the $300 rebate. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.