Tax Filing Question
 

I received a small amount of scholarship from my university which is funded privately by my university. I am not planning on taking the Lifetime Learning Credit since I'm not a resident or american citizen but do I need to report the scholarship I received as taxable income?

Under my 1098T:

Amounts for Qualified Tuition & Expenses: $XX
Scholarship or Grants: $XX

So I guess this is the amount that was report to IRS (1098T) and I dont know whether I should include the scholarship as taxable income

Re: Tax Filing Question
 

You DO NOT need to be a US citizen to claim this credit! What kind of program are you enrolled in? Looks like you are eligible for even a better credit, American Opportunity Credit, if you are currently in your first four years of higher education. The amount of credit will be determined based on how much you paid out of pocket (Amiunts billed for Tuition & expenses minus scholarships and grants) And no, you do not have to include that scholarships in taxable income because you did not have to do anything to get them! If you did not claim this credit last year and actually got a 1098T, you should think about amending your return. You are losing out on a lot of money if you don't claim this credit.

Re: Tax Filing Question
 

You can take either the American Opportunity Tax Credit or the Lifetime Learning credit. You only need a valid social for that. No citizenship or green card required.


Take it from me, I'm a student

Re: Tax Filing Question
 

Is it possible to apply for either of those as a senior graduating with a bachelor's this spring?

-DreamyDream

Re: Tax Filing Question
 

Yes!!

Re: Tax Filing Question
 

Yes. It's not about "applying" for it. You should have received a 1098T which shows how much you were billed for tuition and qualifying expenses. Amounts you paid in cash are used when your tax return is filed and you should see a credit. If you're claimed on someone's return, they should see this credit on their return!

Re: Tax Filing Question
 

Thank you for the replies!

I've read about them, and I am still a bit confused.

I am currently a dependent under my parents, and because they are undocumented, they are not eligible for tax returns.

And it seems that there is a different process for student in my case, but I am not too sure.
https://www.irs.gov/publications/p97...link1000178198

I took out a loan to pay for my tuition, but it seems that still qualifies as "qualified education expense".

My parents pay a company to do taxes for them, so would it be ok if I just ask them to help us get the Credit?

-DreamyDream

Re: Tax Filing Question
 

Now it's very difficult to give you advise without knowing how much income your parents are reporting. I will tell you this that if you are being claimed as a dependent on their return and if you are receiving 1098T, they are eligible to claim the credit. This is the second time I'm telling you and others have as well. Just believe us. Now secondly, who is preparing their return? If they are a CPA or well reputed Accountants, they should know what to do if you give them the 1098T. Did you pay any interest on the loan in 2015? Because you can get a deduction for that as well. I suggest you don't try to read too much into the details on your own. Let the Accountant handle it.

Re: Tax Filing Question
 

I'm on Master's Program that's why I cannot claim the American Opportunity Credit. The thing is we are under DACA and if I claim the Life Learning Credit, since it's coming from government and given our status, I don't want to take a risk.

Re: Tax Filing Question
 

You are right about American Opportunity Credit as it applies to your first 4 years of higher education. Regarding the Lifetime Learning Credit, you are eligible. Suit yourself.