I'm helping a friend do a tax return with a 1098-T that has more scholarship than college expenses. Since the scholarship is unrestricted, I believe there is a way for the student to claim the $1,000 refundable part of the AOTC but am unsure of the mechanics. How much of the scholarship should be allocated to income? The student has no tax liability if that matters.
Is there an easy to understand source to help work through this issue?
Am. Opportunity Tax Credit For Dummies
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Re: Am. Opportunity Tax Credit For Dummies
Try Publication 970. https://www.irs.gov/pub/irs-pdf/p970.pdf
See page 5 TIP coordination Chapter 2 and 3.
See page 5 TIP coordination Chapter 2 and 3.