Cash Management Department

1. I cannot use Form 8863 because I received a scholarship, what can I do?

   You must reduce the qualified expenses by the amount of any tax-free educational assistance. Do not reduce the qualified expenses by amounts paid with the student’s earnings, loans, gifts, inheritances, and personal savings. Also, do not reduce the qualified expenses by any scholarship reported as income on the student’s return or any scholarship which, by its terms, cannot be applied to qualified tuition and related expenses.

   References:

   1. Publication 970, Tax Benefits for Higher Education.
   2. Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits).