Prepaid Tuition/Taxable Scholarships/AOTC question

Nevadamomof3
Thu, 31 Jan 2019 02:00:27 +0000

I have been pulling out my hair. Any help you can give me I would be so thankful. My child is a freshman. He got his 1098-T- He has $4377 in Box 1 ($3584 tuition and $793 mandatory qualified fees)and $7050 in Box 5 (scholarships). He also had $391 in mandatory books.

He also received a 1099-Q for $3584 (prepaid tuition DISTRIBUTION from state contract) with earnings of $1884.13 and 1699.37. His Prepaid Tuition MUST go towards tuition and cant go to room and board per our Prepaid Contract. Making almost all of his room and board TAXABLE. Room and board expenses are 6335 and 5886 is TAXABLE for room and board.

Does 1099-Q go on his taxes if in his name and the 1098-T reported on ours? Just very confused.

Turbotax and Taxact are both saying we get almost the full AOTC. Is this correct? Thanks so much!