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March 28, 2025
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1098-T

  • March 28, 2025
  • 2 replies
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My sons 1098-T shows line 5 as $16068. Nothing in Line one or any other line. I claim him as a dependent on my taxes. Does he need to file his own taxes for that 1098-T or can I add the 1098-T to my taxes? He has never filed taxes before. And this amount in line 5 is quite a bit but we still supported him. Not sure what to do. 

Best answer by Hal_Al

Q.  Does he need to file his own taxes for that 1098-T or can I add the 1098-T to my taxes?

A. He has to file his own return to report any taxable scholarship.  A dependent-student's taxable scholarship cannot go on the parent's tax return. 

 

But the 1098-T is not a controlling document. What's really going on here?  Why is there nothing in box 1 of the 1098-T.  That $16,068 paid for something. 

 

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2024 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.

2 replies

CatinaT1
March 28, 2025

You will continue to claim him as a dependent and you do not need to enter the 1098-T if there is no amount in box 1. Unless he has income, he would not need to file a return.

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Hal_Al
Hal_AlAnswer
Employee
March 28, 2025

Q.  Does he need to file his own taxes for that 1098-T or can I add the 1098-T to my taxes?

A. He has to file his own return to report any taxable scholarship.  A dependent-student's taxable scholarship cannot go on the parent's tax return. 

 

But the 1098-T is not a controlling document. What's really going on here?  Why is there nothing in box 1 of the 1098-T.  That $16,068 paid for something. 

 

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2024 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.