College expense tax question

[leahjade]

My child got a scholarship for tuition and we are using our state tuition plan for her room and board. While doing my turbo tax, it's showing this as income? Isn't room and board considered an education expense? I am so confused!

 

[snoopybabe]

If you child is going for a degree and the info came from the form the school sends you, you will be able to get an education tax credit not deduct it from your taxes. The credit is still nice.

 

[leahjade]

One last tax question! What's the most one family can deduct if you have several children in college? I know there are two different credits and you can only do one or the other and I'm thinking there is a maximum per family. Why can't that make this stuff simpler!

 

[BridgetBordeaux]

I encourage you to do a little printing/reading from the IRS site about college issues and taxes. Pub 970 is the one you want to look at.

You could also call their number and have them mail the publication to you. You have serious money issues involved here and you want to get it right the first time.

 

[Sadie22]

I second that you need to go to irs.gov and read Publication 970.

Credits and deductions are per student and what you if you paid for your dependent (or your student, if the student is independent and paying his/her own bills) can take credits and deductions for is strictly defined.

 

[Skatermom23]

My child got a scholarship for tuition and we are using our state tuition plan for her room and board. While doing my turbo tax, it's showing this as income? Isn't room and board considered an education expense? I am so confused!

I don't believe room and board is considered education expense. We just got our statement from the school and it only lists the tuition amount.

 

[Darcy03231]

My understanding from reading everything is the scholarship money had to go to tuition or it is considered income.

 

[LilyWDW]

I actually just did this.

The only items that can be deducted as educational expenses are tuition, textbooks, and items REQUIRED to attend the University. Items required to attend would mean that the student would not be admitted without that item. Room and board are NOT included and can not be deducted. Any other money gained by the student is considered income and should be reported as such.