Education Expenses Worksheet
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
| 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
| Name of Scholarship or Grant |
Amount |
Can be used for living expenses? (Check if yes) |
Form 1099-Q Distributions:
Impact on the Tax Return
Based on the education expenses, scholarships, and grants reported on Form 1098-T (if received) and information found on the account activity statements, we have determined the following:
in available qualified educational expenses are available to be included on the tax return (Form 8863) to calculate the education credit.
must be included on the student’s tax return as scholarship income.
If $2300 or more of scholarship is declared as income and the student is a dependent, please refer to When is Scholarship Income Out of Scope?
must be included on the student’s tax return as scholarship income.
If $2300 or more of scholarship is declared as income and the student is a dependent, please refer to When is Scholarship Income 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