Education Expenses Worksheet for 2021 Tax Year
Attach a copy of the student's account statement for each semester (accessible via school's online portal) to this worksheet.
What credit will be applied?
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Expenses for 2021 tax year
| Name of Expense |
Academic Term |
Amount |
Qualifies for tax free scholarship? (Check if yes) |
Qualifies for credit? (Check if yes) |
|
(AOC and LLC) |
(AOC only) |
Scholarships and Grants for 2021 tax year
| Name of Scholarship or Grant |
Amount |
Can be used for living expenses? (Check if yes) |
Form 1099-Q Distributions:
Impact on your 2021 tax return
Based on your education expenses, scholarships, and grants reported on your Form 1098-T and information found on your account activity statement from your school, we have filed your education credit in the following manner:
in available qualified educational expenses were included in your tax return on Form 8863 to calculate your education credit.
must be included on the student’s return as scholarship income on Form 1040.
If $2200 or more of scholarships is moved to income, please refer to When is Form 8615 Out of Scope?
must be included on the student’s return as scholarship income on Form 1040.
If $2200 or more of scholarships is moved to income, please refer to When is Form 8615 Out of Scope?
Total Qualified Tuition, Fees, Books, and Supplies for scholarships/grants |
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Qualified Tuition, Fees, Books, and Supplies for AOC/LLC |
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Total Grants, Scholarships, and 1099-Q Distributions |
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Before Transferring Income |
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Qualified Expenses Available for Credit |
Total qualified expenses for AOC/LLC that exceed grants and scholarships |
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Taxable Scholarships and Grants |
Total grants and scholarships that exceed qualified expenses |
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After Transferring Income |
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Qualified Expenses Available for Credit |
Total qualified expenses for AOC/LLC that exceed grants and scholarships |
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Taxable Scholarships and Grants |
Total grants and scholarships that exceed qualified expenses |
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Transferring scholarships and grants to student as income
Are the available education expenses $4,000 or more for AOC or $10,000 or more for LLC?
If yes, there is no benefit in transferring scholarships and/or grants to income.
If no, then do any of the scholarships or grants allow their funds to be used for living expenses?
If yes, there is no benefit in transferring scholarships and/or grants to income.
If no, then do any of the scholarships or grants allow their funds to be used for living expenses?
Determining amount of scholarship/grant to transfer to income
:
Maximum amount of expenses for calculating creditLine 1
Enter $4,000 for AOC or $10,000 for LLC
Expenses that qualify for tax-free scholarships and grants but not for creditLine 2
From table above: Qualified expenses for scholarships/grants - Qualified expenses for credit
Scholarships that cannot be used for non-living expenses and 1099-Q distributions allocated to expenses that don't qualify for the creditLine 3
Lesser of line 2 and (scholarships/grants that cannot be used for living expenses + 1099-Q distributions)
Remaining Scholarships/Grants that cannot be used for living expenses and 1099-Q distributionsLine 4
(Scholarships/grants that cannot be used for living expenses + 1099-Q distributions) - line2
Remaining expenses that do not qualify for creditLine 5
Line 2 - line 3
Scholarships that can be used to living expenses allocated to expenses that don't qualify for the creditLine 6
Minimum of line 5 and scholarships and grants that can be used for living expenses
Remaining Scholarships/Grants that can be used for living expensesLine 7
Line 5 - Line 6
Subtract remaining scholarships, grants, and 1099-Q distributions from expenses that qualify for the creditLine 8
Qualified expenses from table above - line4
Qualified expenses for credit before income transferLine 9
Line 8 - Line 11. Put 0 if negative or Line 1 if greater than line 1.
Taxable scholarship before income transferLine 10
Line 7 + Line 8, put 0 if negative
Transfer amountLine 11
Line 6 + Line 7
Qualified expenses for credit after income transferLine 12
Line 9 + Line 11
Taxable scholarship after income transferLine 13
Line 10 + Line 11
Maximum amount of expenses for calculating creditLine 1
Enter $4,000 for AOC or $10,000 for LLC
Expenses that qualify for tax-free scholarships and grants but not for creditLine 2
From table above: Qualified expenses for scholarships/grants - Qualified expenses for credit
Scholarships that cannot be used for non-living expenses and 1099-Q distributions allocated to expenses that don't qualify for the creditLine 3
Lesser of line 2 and (scholarships/grants that cannot be used for living expenses + 1099-Q distributions)
Remaining Scholarships/Grants that cannot be used for living expenses and 1099-Q distributionsLine 4
(Scholarships/grants that cannot be used for living expenses + 1099-Q distributions) - line2
Remaining expenses that do not qualify for creditLine 5
Line 2 - line 3
Scholarships that can be used to living expenses allocated to expenses that don't qualify for the creditLine 6
Minimum of line 5 and scholarships and grants that can be used for living expenses
Remaining Scholarships/Grants that can be used for living expensesLine 7
Line 5 - Line 6
Subtract remaining scholarships, grants, and 1099-Q distributions from expenses that qualify for the creditLine 8
Qualified expenses from table above - line4
Qualified expenses for credit before income transferLine 9
Line 8 - Line 11. Put 0 if negative or Line 1 if greater than line 1.
Taxable scholarship before income transferLine 10
Line 7 + Line 8, put 0 if negative
Transfer amountLine 11
Line 6 + Line 7
Qualified expenses for credit after income transferLine 12
Line 9 + Line 11
Taxable scholarship after income transferLine 13
Line 10 + Line 11