1098-T Box 1 Incorrect

Forum|Forum|6 years ago
February 5, 2020
2 replies
0 views

The payments received by my educational institution from spring 2019 to fall 2019 were a total of $28,446, yet box 1 on my 1098-T says $10,010. The amount billed from spring to fall is $28,446 (but there is nothing in box 2). Box 5, scholarships or Grants is $19,040 for spring through fall. If I use what is in box 1, then I don't qualify for any tax credit because the amount billed is less than scholarships and grants.

When I emailed my school about it there response was:

"Personal financial records may differ from what is shown in Box 1 (payments received) of the Form 1098-T. Stated another way, the amounts reported on personal tax returns may not align with the amounts reported on Form 1098-T. This is due to how educational institutions are required to report amounts on the Form 1098-T, which changed under federal law beginning with tax year 2018. Due to this change in reporting requirements and Drake’s software system, students attending Drake prior to the change for 2018 may have an amount reported in Box 1 of the 2019 Form 1098-T that represents qualified tuition and related expenses billed by the University rather than the amount paid by the student. This occurred in order to maintain consistency with prior Form 1098-T’s you received from Drake and to ensure all amounts paid and billed over the course of your academic career with Drake are reported and not duplicated. Your student account activity should be used to supplement the Form 1098-T and assist with determining eligibility for education tax credits."

TurboTax Free Edition Online

Best answer by MinhT1

The amount used for claiming education are qualified education expenses you actually paid to the school in 2019 which should be shown in box 1.

If your box 1 does not show the correct amount paid, when filling out your form 1098-T in TurboTax, leave it blank on the entry screen.

Under box 1, on the 1098-T screen is a blue link: What if this is not what (student name) paid to this school? Click on that and you will be given a chance to enter what was actually paid in 2019.

MinhT1Answer

The amount used for claiming education are qualified education expenses you actually paid to the school in 2019 which should be shown in box 1.

If your box 1 does not show the correct amount paid, when filling out your form 1098-T in TurboTax, leave it blank on the entry screen.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

mgereau18Author

When I do this, Turbotax says they noticed box 1 was blank and that I should enter it unless blank on my 1098-T. Can I be sure this won't be a problem when the IRS reviews my taxes?

MinhT1

It won't be a problem as TurboTax will report as Tuition the actual amount you enter. The IRS has a copy of the 1098-T but does not see what you entered in box 1, but only the modified amount reported which is the actual amount paid.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Carl11_2

Employee

Quit going around your elbow to get to your thumb. Enter the 1098-T *exactly* *as* *printed* and press on with lfe. Follow up screens allow you to enter amounts not included on the 1098-T. *read* *the* *small* *print* on each follow up screen, or you'll screw it up.