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Well, D just got her first 1099-T, and I'm puzzled. It is under her social security number, though we were the ones who paid the bills. Okay....
1. Box 1 (payments received for qualified tuition and expenses) is blank.
2. Box 2 has an amount billed for qualified tuition and expenses of $20,229.
3. Box 5 shows the $8250 in fall semester scholarships. (That number agrees with my numbers. Its the only number that agrees with my numbers.)
4. Box 7 is checked, indicating that that the amount in box 1 or 2 includes some amounts for terms beginning Jan-Mar 2010.
So I'm not sure what I'm supposed to do with this form? At D's school, you pay everything into a single student account; they don't track eligible and ineligible expenses from different pots. Can I just assume that the scholarship money was used to pay eligible expenses? Can I assume that the first dollars we paid were always for eligible expenses? Do I just figure out eligible expenses on my own? With respect to the fees I paid in December, 2009 (which were due in late December but which applied to the spring semester's costs, some of which were tuition, some of which were fees, some of which were housing/meal plan related) - do I get to say which my money paid for? Do I care?
Some of the payments into her account came from the 529 plan.
As long as the scholarship amounts plus the amount paid by the 529 were less than the cost of tuition, am I right in thinking that my D does not need to report the scholarship on a tax return?
I'm usually pretty good on the tax front, but this is a 1098 that leaves me very confused, and I'm hoping that someone here can provide some explanation (or direction to some explanation) of how we're supposed to work with this form.