Comment below if you want a video explaining what education tax credits are!

@khaledkassem8913

2 жыл бұрын

Yes please

@yazmeenmitchell8878

7 ай бұрын

yes please

Great video!

@TheScholarshipSystem

Жыл бұрын

Glad you enjoyed it!

Yes please

Education credits and scholarships

Does this count in texas as well? since there are no state income taxes?

Tax credit video please

I have a number of questions and my CPA says that this is not true and my daughter doesn't receive overage checks but her 1098T reflects box 5 being greater than box 1 but the 1098T doesn't have room and board or meal plan on it?

@TheScholarshipSystem

2 жыл бұрын

Whatever qualifying expenses were paid during the 2021 academic year (not tax year) will be used to calculate the credit. 1098-T will only include qualified education amounts in box 2. It will not include room and board and other non-qualified expenses. If she had scholarships that went towards room and board (which is a non-qualified expense), that could explain the difference. You may be able to get a statement from the cashier's office or the financial aid office that could break down specifically what went where.

I'm not understanding exactly how having a part-time job would negate or reduce the tax owed on scholarship/grant overage. Do you mean that you may request high tax withholdings from your job thereby increasing your tax payments (see this section in 1040)? If so, this does nothing to reduce your actual taxes, but it does help you net out those taxes. Please clarify what you meant. Thank you.

@TheScholarshipSystem

Жыл бұрын

That is correct. The federal withholding from employment (if any) will help "pay for" any taxes owed on scholarship/grant income.

My son is a first year student. We paid his Spring 23 tuition in December 22, so that showed up on his 2022 1098t (including the portion covered by school aid not paid until Jan 23). Box 7 is checked. How does this impact 2023 in terms of whether the spring tuition financial aid is taxable?

@TheScholarshipSystem

Жыл бұрын

In 2023, there will be a full calendar year to report. Spring tution will be comingled with Fall and the net totals will be reported in 2023's 1098T. You won't be issued a 1098 for each academic period. Because you will most likely pay Spring '24 tuition in December '23, there shouldn't be a significant issue due to timing.

Hello, dries both parent and student put the 1098t to their tax return if we can claim the student?

@TheScholarshipSystem

Жыл бұрын

It depends. If a student needs to claim taxable income, they will essentially be using the 1098T. If parents will claim the education credit, they will use the 109T form to calculate the amount. Please talk to your tax advisor since every situation is different.

What if your “payments received” is lower than your scholarships and grants but only because you paid the rest in loans so it wasn’t included in payments received for tuition?? My accountant is saying I need to pay but I came out of pocket for about $7k that semester

@TheScholarshipSystem

2 жыл бұрын

If tuition was paid with loan proceeds, it would still show up as payments received on your Form 1098-T. If scholarships/grants are greater than tuition, the difference is usually taxable since it was most likely applied to room and board expenses, which are taxable. Your loans may have been used to pay for room and board, not tuition.

What if my student did not receive a 1098-T because the scholarships/grants exceeded tuition? Do we need to report anything in regards to this?

@TheScholarshipSystem

2 жыл бұрын

All students should receive Form 1098-T. It may be in the student's college portal. Some schools do not mail out the form anymore. If it is not there, the student should contact their financial aid office. If scholarships/grants exceed tuition, there might be taxable income to report.

@Frxnando

Жыл бұрын

@@TheScholarshipSystem how could we calculate the taxable income to report on the scholarships/grants?

Tax credit video

Tax credit video please

@TheScholarshipSystem

2 жыл бұрын

Here you go: kzread.info/dash/bejne/mIGNubuGYLrMe9o.html

Tax credit video please

@TheScholarshipSystem

2 жыл бұрын

Hi Kathy, the tax credit video is up! kzread.info/dash/bejne/mIGNubuGYLrMe9o.html

Tax credit video please

@TheScholarshipSystem

3 ай бұрын

kzread.info/dash/bejne/mIGNubuGYLrMe9o.htmlsi=PCqdTWNXTpANvQba