Pegasus Posted March 3, 2019 Share Posted March 3, 2019 I like to remind folks each year that you are allowed to optimize your AOTC even if the buik of your student's eligible expenses are covered by grants/scholarships by having the student claim a portion of those funds as going towards non-eligible expenses and claiming that amount as income. This only works for grants/scholarships that do not specify that they MUST be used for tuition, etc. Here's a fact sheet on how it works directly from the U.S. Treasury website: https://www.treasury.gov/resource-center/tax-policy/Documents/Report-Pell-AOTC-Interaction-2014.pdf it's relatively simple to do using TurboTax but I have to do a quick help search each year to refresh my memory on how to input things correctly. 2 1 Quote Link to comment Share on other sites More sharing options...
Lanny Posted March 3, 2019 Share Posted March 3, 2019 @PegasusThank you for posting that. Extremely interesting and helpful! I will Forward that to my DD and we will be studying the web page on the link you provided. Thank God for the Online Tax Preparation services to guide us thru this! Quote Link to comment Share on other sites More sharing options...
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