I realized I might be able to increase my American Opportunity Tax Credit if I make part of my scholarship taxable.

    On my 1098-T, I had about $13,300 in tuition and $12,700 in scholarships. From what I’ve read in Publication 970, you can treat part of your scholarship as taxable income so more of your tuition qualifies for AOTC.

    If I move around $3,400 of the scholarship to taxable income, I’d get the full $2,500 credit.

    Is this allowed even though the scholarship was applied directly to tuition by the school? Can I still treat some as taxable income for tax purposes? I couldn’t find any information on this.

    Amending 2024 return. Can I make part of scholarship taxable to get full AOTC?
    byu/Worth_Awareness3032 intax



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