1098T Grant Money

Forum|Forum|6 years ago
May 1, 2020
1 reply
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I did not claim enough grant money as taxable income on my 2019 taxes. I amended it and did it correctly through Turbotax and now I am owed 30 MORE dollars from the IRS. Do I legaly need to amend my taxes if my mistake was in the IRS's favor? To be clear: I did not receive any educational tax credits the first time I filed or the second time.

Hal_Al

Employee

Simple answer: No. If you don't want to go thru the hassle of an amended return to get $30, you do not have to.

That said, it depends on the details. You don't usually report more income and have less tax (although it's possible). What is in boxes 5 and 1 of your 1098-T. How much other grant $ is there. What are your book and other eligible expenses not shown on the 1098-T. Why are you (or your parents) not claiming a tuition credit? Are you a dependent on someone else's return. Do you have other income (other than the grants). Is the taxable grant money on line 1 of the 1040 (with the notation SCH) or some where else (typically line 8 of schedule 1)?