1098-T Box 5

Forum|Forum|6 years ago
April 6, 2020
2 replies
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Should a housing grant provided by the school be included in Box 5 of the 1098-T?

Best answer by SusanY1

Yes, housing grants would be included. This box includes all forms of grants and scholarships paid to or on behalf of the recipient for which repayment is not expected.

Grants or scholarships earmarked for housing are generally taxable income to the recipient.

TurboTax will list these as Scholarship income on the return to the extent that they exceed tuition and fees paid unless certain exceptions apply.

macuser_22

Employee

Box 5 instructions:

Box 5. Scholarships or Grants
Enter the total amount of any scholarships or grants that you administered and processed during the calendar year for the payment of the student’s costs of attendance. Scholarships and grants generally include all payments received from third parties (excluding family members and loan proceeds). This includes payments received from governmental and private entities such as the Department of Veterans Affairs, the Department of Defense, civic and religious organizations, and nonprofit entities. However, see Exceptions, earlier.
A scholarship or grant is administered and processed by you if you receive payment of an amount, whether by check, cash, electronic transfer, or other means, and such payment is designated as a grant or a scholarship by the payor, or the circumstances make it clear that the payment is a grant or scholarship. A Pell Grant is an example of a grant administered and processed by a college or university in all cases.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

KathrynG3

Yes, Champ @macuser_22 is correct. Check these references for more details:

How do I enter Form 1098-T?

Are my scholarships, fellowships or grants taxable?

2019 IRS Publication 970

@alan21

alan21Author

I guess I am still not sure after having read responses. I have read through all the applicable IRS guidance, but nowhere did I see any reference to a grant specifically designated to be used for housing. So I am just trying to confirm that Box 5 would also include grants specifically designated as "Housing Grants".

SusanY1Answer

Yes, housing grants would be included. This box includes all forms of grants and scholarships paid to or on behalf of the recipient for which repayment is not expected.

Grants or scholarships earmarked for housing are generally taxable income to the recipient.

TurboTax will list these as Scholarship income on the return to the extent that they exceed tuition and fees paid unless certain exceptions apply.

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