The 1098-t shows the following $ box 1 Payments received for qualified ....$ 8100 box 18 Scholarships or grants ........... 18600
Using tubotax (tax year 2006), box 5 was added to 1040 line
7 as additional earnings and box 1 was used to calc the deduction/credit. Is this correct? The full scholarship is taxed and then reduced by either the deduction or credit? This is not my return so I don't have all the details but from the 1099-t can I assume that only part of the scholarship was used to pay for the qualified expenses? The taxpayer is on a teaching scholarship at the university. Tia for any help you can provide. Neil
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