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    rek_col's Avatar
    rek_col Posts: 8, Reputation: 1
    New Member
    		  
    #1

    Apr 7, 2008, 09:05 AM
    Tuition expense over scholarship amount
    Hi,

    I would appreciate a little help with my taxes. I am a resident alien for tax purposes. My wife is a non-resident and we have elected to file taxes jointly as residents for 2007.
    For they ear 2007 my wife had a scholarship amount of 7000 from her school. 14 % of her scholarship was taxed. We had to pay a total of 9100 dollars as tuition for her FALL semester. My wife did not have any other earnings. Her 1042-S form for the fellowship saws the amount is non-qualified.


    I have the following questions:

    1) since the 7000 dollars fellowship was used for paying tuition isn't the fellowship amount
    Tax-free.

    2) If the answer to the first question is yes then can I also claim a education(tuition credit) for the remaining 2100 dollars not covered by the fellowship.

    Thanks for your help
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 5, 2008, 12:39 PM
    1) Only $7,000 of the fellowship is tax-free; the rest is taxable.

    2) Yes, you can claim the credit for the difference.
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