Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-06-2015, 10:27 PM
Junior Member
 
Join Date: Feb 2009
Posts: 2
American Opportunity Credit for the year 2014

One of my friend have received 2 1098Ts.....one with amount in Column 2, Box 7 & 8 checked. And other one is amount in Box 5. So while working in Drake how should I enter these 2 1098Ts as the he is eligible to receive the American Opportunity Credit as their income is lesser than the threshold limit and all other conditions are fulfilled but I am confused.Should I deduct the scholarship received in 2nd 1098T from the amount billed in 1st 1098T received? Please guide me through. Thanks in advance.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-07-2015, 02:00 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
One of my friend have received 2 1098Ts.....one with amount in Column 2, Box 7 & 8 checked. And other one is amount in Box 5.========>>>>>>>>>> If the amount in Box #5 ,your bud’s scholarships, is GREATER THAN the amount in Box 1 or Box 2, whichever is filled in on your 1098-T, then he cannot use any expenses to reduce his tax bill.he must report the excess as taxable income on his 1040. If the amount in Box #5 is less than the amount in Box 1 or Box 2, whichever is filled in on the 1098-T, then he can use the expenses as a deduction or credit. By subtracting Box 5 from Box 1 or Box 2. The difference is generally the amount that was paid out of pocket and that can be reported on his return. Box 7 is a check-off box to indicate if the billed amounts include any for the academic period
beginning January-March of the succeeding year of 2015. it says that expenses paid in 2014 for spring courses in 2015 CAN be claimed on your 2014 return




So while working in Drake how should I enter these 2 1098Ts as the he is eligible to receive the American Opportunity Credit as their income is lesser than the threshold limit and all other conditions are fulfilled but I am confused.Should I deduct the scholarship received in 2nd 1098T from the amount billed in 1st 1098T received? Please guide me through==========>>>>>>>>>> as mentioned above. I guess you need some tech advice from the software vendor perhaps customwer service.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
American Opportunity Credit Dave R Miscellaneous 1 02-05-2015 10:31 PM
American Opportunity Credit mhesseltine Miscellaneous 1 02-14-2013 03:02 PM
Six Facts About the American Opportunity Tax Credit Samatg General 1 12-31-2010 02:47 AM
Which taxpayers cannot claim the American Opportunity Credit? TaxGuru Education Planning 0 07-27-2010 12:24 AM
Which taxpayers are eligible to claim the American Opportunity Credit? TaxGuru Education Planning 0 07-27-2010 12:09 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning