Olivia Learner is single and 20 years old. She cannot be claimed as a dependent on anybody else's return. She works as a secretary in a local real estate company part time. Her W-2 showed compensation of $15,000, Federal income tax withheld of $50. Olivia attended school as a full-time student during the spring and fall semesters. Olivia received a 1098-T with $8,500 in Box 1 (Tuition) and $12,000 in Box 5 (Scholarships and Grants). Olivia also paid $500 for books. Olivia had a tuition-based scholarship for $6,000 and Federal Pell grants of $6,000. She has never taken the American Opportunity Credit in the past since her grants and scholarships exceeded her tuition and book expenses. Her Form 1098-T reflects her second year of post-secondary school. She has not been convicted of a felony and her earned income is over half of her support