<p>I have been reading the article, “Navigating the Form-1098-T Tuition Statement: Inconsistencies in Reporting” quite a few times, especially starting from the 6th paragraph from the bottom & clicking on Exhibit 3.
<a href=“Find Your Page | The New York State Society of CPAs”>Find Your Page | The New York State Society of CPAs;
<a href=“Find Your Page | The New York State Society of CPAs”>Find Your Page | The New York State Society of CPAs; </p>
<p>I understand it that if the scholarship is not restricted to tuition only; the formula for figuring out the Hope Credit to be in my situation would be:
$5158. Scholarships & grants
-$1350. Less: (laptop) Required books, supplies, & equipment
- $261. Less: (books) Required books, supplies, & equipment<br>
$3547. Net scholarship & grant income
-$5804. Less qualified tuition & expenses
-$2257. Positive amount is scholarship income (Negative amount is available for education credits or tuition & fees reduction.</p>
<p>It seems that the $2257 is the Qualified Expense for the Hope Credit.
And it appears that none of the scholarships are taxable.</p>