<p>In the year when the student is graduated, 1098T from Yale will report the amount of scholarship receieved, but zero qualified tuition and expense! What you do in the freshman year may affect how you report the tax in April in the year after your kid is graduated.</p>
<p>Kdog044 is right: Be careful about going off the 1098T. Keep the records of your educational payment; this is all IRS cares when you get audited.</p>
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<p>This is exactly what I ran into. I saw that there was a disjunct fr year and so decided not to use the 1098 numbers but instead to keep tuition charged and grants given linked for each semester.</p>
<p>Let’s say that junior received some non-Yale scholarships that, combined with the grant from Y total more than tuition and fees. Would it makes sense (and be legal and ethical!) for junior to declare that amount as taxable income on his return since he is taxed at a lower rate? Our joint return - the Mrs.'s and mine - is extremely simple and this is the only bit that worries me. I apologize if this is too technical/personal/boring.</p>
<p>re the Yale Siena Program</p>
<p>Anyone have kids headed there this summer? Or kids who participated in previous years?</p>
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<p>The amount of scholarships/grants above qualified educational expenses (don’t forget books count too) is supposed to be declared as income on the student’s taxes, not the parents. </p>
<p>As a matter of fact, sometimes it is beneficial for students to apply the grants/scholarships (if not stipulated to go towards tuition) towards R&B first (and therefore pay more taxes, albeit at a lower rate), permitting the parents to take an educational tax credit such as the AOC which can be as much as 2.5k.</p>
<p>There are several threads on the FA & Scholarship forum that discuss taxes and grants/scholarships.</p>
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<p>Don’t think there is such a thing on CC :D.</p>
<p>Thank you!</p>
<p>One more 1098T question…</p>
<p>OK so our 1098T for our student shows only the grant $ for the fall term (freshman). Noted 8/26/11…</p>
<p>Not spring term…
and
shows the total tuition for the academic yr (40k+) billed in 2 sums, 6/20/11 and 10/20/11.</p>
<p>Can we expect that the grant $ for spring term will appear on next yrs 1098T…and any award $ for fall (yet TBD) will also appear?</p>
<p>Our acct handled the 1098T in the jt return since our student had no income etc.</p>
<p>^Your 2012 1098 will include:</p>
<p>Tuition for fall 2012 and spring 2013
Grants for spring 2012 and fall 2013</p>
<p>If you use the 1098 numbers for your taxes, your problem will come the tax year of sr year, as mcat2 & I describe in posts #1441 & 1442.</p>
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<p>I’m not sure I understand this, the tuition/grant monies need to be accounted for on the students, not the parents taxes.</p>
<p>^ We asked the acct about it and had conversations several times on it because so many parents have had their kids file separately. </p>
<p>We had the option of showing the tuition/grant on our return…and our student is still a dependent. The dependency status wouldn’t change whether our student filed a return or if it was accounted for on our returns.
The 1098T basically tells the IRS that we can’t claim the full tuition, it tells them how much of the qualified expenses we did pay.
Our student has no income and the grant was significantly lowered than the tuition.
Based on the income restrictions/diminishing returns on the credit for tuition, we got no advantage there either.
In the end, it was a wash.</p>
<p>The acct told us there were two ways to handle it and it will be revisted next year as well. </p>
<p>I sure hope this acct is correct. They handle our personal and business returns. Basically the 1098T keeps people accountable from claiming more qualified expenses in tuition than they really paid.</p>
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I agree with fogfog and his acct. I vaguely remember reading somewhere that, at least at the UG level (i.e., for an UG student who is a dependent of his/her parents in the eyes of IRS), as long as it is the parents who pay for the qualified education expenses (which roughly equals to “tuition&expenses - scholarship/grant - 529 distribution” – assuming the sum of the latter two is lower than the first so there is still some remaining qualified education expenses to be paid), the paid qualified education expenses can be filed on parents’ tax return.</p>
<p>Am I wrong here? (I thought both of us are veterans of tackling these Tax Return issues and by now both of us should have gotten them “mostly right” :))</p>
<p>The situation is different for reporting the qualified education expenses if the student is already a graduate student who is no longer a dependent of the parents in the eyes of IRS due to the age (except that it is likely the student’s medical insurance can still be under parent’s medical insurance for a few more years.)</p>
<p>Do other people’s children have issues with the way housing is selected for the upcoming year or just mine? 
It does seem overly complicated/stress-inducing.</p>
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I’m confused by this statement. The institution has the option to show what was actually paid OR what was billed. Most institutions choose to show amount billed so in this instance I don’t see how this keeps people accountable.</p>
<p>In our case, the only aid our student has is a grant from the school, no scholarships paid to the U from outside sources.
In the case of our 1098T, it shows the U’s qualified expense total and the amont of the grant.
We couldn’t tell the IRS that we paid the full qualified expense, as the 1098T tells the IRS our student got a grant.
I think it helps keep padding in check and theoretically it helps reduce the paperwork to produce a qualfied expense report.
In our case, the 1098T is about reducing a potential expense, it is not an income item.</p>
<p>Our student has no other income.
With a SEAS curriculum, labs, P sets etc and year round varsity sport, there was no time for the work study! :(</p>
<p>As far as other qualified expenses like the laptop etc…I don’t know how those are accounted for…I suspect one would have to get substantial grants…I don’t know what Y does for kids who get a “full ride” and what that means.</p>
<p>One the housing front–haven’t heard a word–though we know kiddo and the frosh roommate were very happy with the match and were looking for a 3rd or 4th --whatever it will take for rooming for next year. Their criteria was going to include being neat/organized/clean…and study habits…/sleep habits as they are both SEAS students. Ours is a varsity athlete with little to no spare time. In bed realtively early all week and only out to play on Sat pm.</p>
<p>Re: Housing.</p>
<p>Over the years, quite a few students felt it is stressful.</p>
<p>The key seems to be that, you need to be in a group which has somebody who is capable of finding somebody to join them if there are not enough group members in this group.</p>
<p>I also heard the stress level had been lower before the residential colleges were remodeled. Blame the success of the remodeling and now every student wants to be in RC every year.</p>
<p>fogfog and mcat2,</p>
<p>I believe we’re talking about two different things. </p>
<p>My comment:</p>
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<p>refers back to what I was talking about in post #1445:</p>
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<p>Since your S did not have more grants than qualified expenses, I agree he doesn’t have to file or pay on them.</p>
<p>I think what your accountant and mcat2 are talking about are the tax credits/tuition deduction I was referring to earlier, that either parents (if the student is a dependent) or the student (if independent) can take on qualified expenses they paid.</p>
<p>I read post #1445 and #1448 again, and found I did read it out of the context and interpreted incorrectly. I guess I just had my senior moment.</p>
<p>^ Hey you had me worried :eek:.</p>
<p>Does anyone know anything about who will be speaking at Class Day?</p>
<p>mcat2 - Thanks for your advice on housing. This is his 2nd go round with this; you think he would have figured out the intricacies after last year. I spoke briefly with him and asked about it and he said that he “got totally screwed over” and didn’t want to talk about it right then. Still haven’t gotten the story; will post if anything pertinent to the group.</p>
<p>^^ This year is the first time around for my son with housing. He didn’t have any issues; went with the 12-pack in Saybrook (which he wanted, but I wasn’t crazy about). What issues are kids having?</p>