Grants and Scholarships

Do student grants and scholarships count on higher education tax break?

Yes i recieved a 1098A or w/e the form is the college sends you and it says in box 2 i paid 2700 dollars on tuition and fees and i recieved 2000 dolars on scholarships and grants i am just wondering if I can use that amount for my tax refund when i file my taxes and i can recieve the higher education tax break. I am 18 and I am single and NO ONE else can claim me as a dependent... THank you

Public Comments

1. The $2700 tuition and fees minus the $2000 covered by scholarships and grants = $700 that will be eligible for tax credits. There are different tax credits so please seek tax advice from a taxpro that can help you figure out which one is best for you.
2. The scholarships count as income. The tuition part is a tax break. This form has been reported to the IRS, so report it all. You must use the 1040 form.