Or maybe it's not odd, but I still don't get it.
We were selected for verification this year. (I'll guess because we went from 2 to 1 in college, from 4 t 3 in the household, and as a result, our EFC is much different this year than last.)
D does not get a 1098 because her scholarships and grants exceed QEE. I used the itemized college statement and the receipts for text books to determine the amount of taxable scholarship. This amount went on the 1040EZ (used Turbo Tax, if that matters). On the FAFSA, the college increased the amount of the taxable scholarship by the amount of books. Why?
The AGI remains unchanged because that was pulled over from the DRT. The college has no idea what we spent for books and other mandatory supplies, which are QEE and if we used scholarship money to pay for, means that amount will not be subject to tax. What regulation stipulates the college changes the amount of scholarship?
Other details (that probably don't matter). I used a 529 to pay the balance due, so there's no moving money around to claim the AOTC. EFC went up by a very small amount. None of d's aid is need-based, so the change in EFC has no affect on us.
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