<p>I forwarded this question to my wife, who prepares taxes for H&$ Block. It’s all cryptic to me, but hopefully this helps.:</p>
<p>Put the w-2 income in as usual wages. Put the 1099 on a schedule C, but then you can subtract all the expenses to get to 0 if that’s the case. IF those expenses are greater than the 1099 income, she can use it against her W-2 income as well. but still needs to file it…she can file free on freetaxusa.com</p>
<p>if she is a dependent, tuition and books go on parents return…tuition and fees are deductible or can be used for a hope or lifetime learning credit.
books and room and board are generally not helpful in the tax area, I believe…there may be exceptions.</p>
<p>If she is still a dependent, she can take her standard deduction, but not her personal exemption. I assume she is still a dependent, that’s why parents are doing fafsa</p>
<p>Books, room & board can’t really be ‘itemized’ as expenses…they have to go on the schedule C…itemizing is schedule A, and that’s for deductions, whcih will not exceed her standard deduction…</p>
<p>for the tax CREDITS (hope and lifetime learning)…books are okay, but room and board is not:
Qualified expenses do not include room and board, insurance, transportation, or other similar personal, living, or family expenses. Qualified expenses may include fees for books, supplies, and equipment only if the fees must be paid to the school for the student’s enrollment or attendance. In addition, qualified expenses may include student activity fees if the fee must be paid to the school for the student’s enrollment or attendance.
[Tax</a> Topics - Topic 605 Education Credits](<a href=“http://www.irs.gov/taxtopics/tc605.html]Tax”>http://www.irs.gov/taxtopics/tc605.html)
for the deduction for tuition and fees, which is limited to 0, 2000, or 4000 depending on income, the rules EXCLUDE books as well
Qualifying Education Expenses
Expenses for tuition, registration fees, and other required fees are qualifying expenses for the Tuition and Fees Tax Deduction. Do not include the cost of books, supplies, software, room and board, or other miscellaneous expenses for schooling. Qualifying expenses are reported to you and to the IRS using Form 1098-T.
[Tuition</a> and Fees Tax Deduction](<a href=“http://taxes.about.com/od/deductionscredits/qt/tuitionfeesded.htm]Tuition”>The Tuition and Fees Tax Deduction)
however, like i said, this needs to go on the parents form, not the kids form.
you can take EITHER the tuition and fees deduction OR take one credit or the other depending on situation. Hope is the best credit, but can only be used for freshman or sophomore. Lifetime learning is good too…but income limits are less than for deduction.</p>