Dependent son received back all tuition fees he paid at college by way of scholarship. Will I still get credit

Question

I file joint return with my spose. My son whom I claim dependent received all his college tution fees back way of hope scholarship. Form 1098T shows $4,172 paid a tution fees in Box 2. Box 5 shows $4,897 received as scholarship. We as parents did not pay any tution fees. Can we still claim the amount in Box 2 as qualified tution fee? Or can we still get the education credit while filing 2006 return?

Answer 1

No you can not claim the Tuition Fees deduction because the Scholarship money covered the Tuition Fees, You might still be able to claim the HOPE/Lifetime Learning Credit if you meet all of the qualifications

Publication 970
http://www.irs.gov/publications/p970/index.html

Answer 2

No, you don't get a credit for an amount that was paid by a scholarship. But congratulations on your son getting the scholarship.