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February 21, 2021
Question

Can I I report waived fellowship tuition for education tax credit?

  • February 21, 2021
  • 1 reply
  • 0 views

I am a graduate student.  I received a 1098-T from my university but my Box 1 is empty. My tuition for the past year was about 25K. I have a fellowship through the university and my tuition is paid for by the university but my tuition bill says "waived."

Can I report this amount in the box below box 1 that says "tuition paid by you, someone else, scholarships, or fellowships," which then qualifies me for a education tax credit?

1 reply

KrisD15
February 21, 2021

No, you do not have the option of claiming tuition waived in order to claim an education credit. 

 

It differs from an unrestricted  Scholarship, as the amount cannot be delegated to anything except the tuition reduction. 

 

According to the IRS:

 

"A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met. • It is provided by an eligible educational institution. • You are a graduate student who performs teaching or research activities for the educational institution. You must include in income any other tuition reductions for graduate education that you receive."

 

IRS Pub 970 Page 8

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