NMF Scholarship and taxes

Longhaul
Wed, 26 Feb 2014 12:21:22 +0000

@Lisa - I reported it to Turbo Tax. I was told it could take 10 days for them to review and make updates. Have not heard back from them yet. Meanwhile, I just overrode Turbo Tax and hand keyed.

I have received conflicting advice on the Housing portion from a few TPAs. I was told the 1098T COULD include amounts charged AND PAID in the 1st quarter of 2014. If it was actually PAID ie Bama credited the scholarship as paid in January 2014, then it is the taxpayer’s choice to claim as 2013 or 2014. Obviously, the NMF now only have 1 year of housing paid, so it would be beneficial to stretch that over 2 tax years. (The logic of claiming in either year follow the logic of IRA contributions).

@rolltide and Lisa – It is the Form 8615 that is killing us. We knew and anticipated paying the earned income at the student’s tax bracket. We did NOT plan on paying at the Parent rate. Like @Rolltide94, yes, DS’s taxes are now double what we set aside.