1098-T Box 1 is underreported by son's university - help needed

Forum|Forum|4 years ago
March 28, 2022
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My son graduated after 3 1/2 years in December 2021. His school is claiming they can only report QTRE payments up to QTRE invoiced in the calendar year 2021 (~$29.3K in 2021 for Fall 2021) versus QTRE payments received in the calendar year 2021 (~$61.8K which I can document, and they report in their internal student account system). They are however reporting his entire total for scholarships and grants for the calendar year 2021 (~$49.8K). I have asked the school about this, and they claim they are reporting this correctly, claiming it has something to do with when they invoice or something like that.

My questions are:

1. Is this true? Is a school limited in what they can report vs QTRE payments actually received?

2. If I input the numbers on the 1098-T, Turbotax says I cannot take the AOTC (it has so far only been taken for 3 years).

Can I manually override this with the actual and documented QTRE (~$61.8K)? If so, how?
Will this trigger the IRS to flag my return since what I report does not match the 1098-T from the University?

How should I address this? I want to ensure I get the credits I am legally entitled to. Thanks in advance.

Not A Product Question

Hal_Al

Employee

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 2021 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. So, no, it will not trigger the IRS to flag your return since what you report does not match the 1098-T from the University.

WRJAuthor

Doesn't the 1098-T from the University go to the IRS? That is why I was concerned about it being flagged since the numbers would not match what the school reported.

Hal_Al

Employee

Q. Doesn't the 1098-T from the University go to the IRS?

A. Yes. But not what you enter. Mismatched boxes are a common occurrence (too many for the IRS to handle). Note the existence of boxes 6 & 7, on the form. The risk is low and your own records are your response to an IRS inquiry. I have yet to see such a post here, in this forum.