jmallard Posted April 4, 2009 Report Share Posted April 4, 2009 Hi, I have a Form 1098T (Tuition Statement) from a client with the following entries. Box 1 - 0 Box 2 - $5.00 Box 5 (Scholarships or grants) - $1183.00 My question is, is the amount in Box 5 taxable as income to my client ? Thanks Jerry Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 4, 2009 Report Share Posted April 4, 2009 Hi, I have a Form 1098T (Tuition Statement) from a client with the following entries. Box 1 - 0 Box 2 - $5.00 Box 5 (Scholarships or grants) - $1183.00 My question is, is the amount in Box 5 taxable as income to my client ? Thanks Jerry Jerry, ask the client if he had qualified expenses to offset the scholarships. For this purpose, qualified expenses include tuition and fees required by the school and fees, books, and equipment required for his course of study. Also, do not take for granted that the 1098T is correct. Get the info from the client. Form 1098T is one of the biggest flat tires, as far as forms go, in the history of forms, in my opinion. See Pub 970, also TheTaxBook, p.12-6 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.