1098-T box 5 amount seems wrong

Forum|Forum|5 years ago
January 28, 2021
1 reply
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Hello, I have a question about box 5 on my 1098-T. I paid out of pocket using the nelnet payment plan offered through the university. I signed up for the plan and used my debit bank card to make monthly payments. Is it normal for a school to report the amount paid as a scholarship or grant in box 5? I did not receive any financial aid from the school.

Hal_Al

Employee

I don't really know what "nelnet" is. A quick internet search says it's some sort of student loans. So, yes it would not be unusual for the school to incorrectly treat loan payments as scholarships. If you know, in fact, that it is not scholarship, you just ignore it. That is, when you enter your 1098-T, leave box 5 blank.

Ideally, you get a corrected a 1098-T from the school, but you don't really need it. The 1098-T is only any informational document. The numbers on it are not required to be entered onto your tax return. If you claim the tuition credit, you do need to report that you got one. You claim the tuition credit, or report scholarship income, based on your own financial records. Keep good records incase you have to respond to an IRS inquiry (unlikely).

ClowellAuthor

Ok, Thanks for the response. I know not to rely on the refund estimator but it was concerning to me that when I entered the amount in box 1 the refund amount jumped up a fair amount and after entering box 5 it went down alot. I haven't actually submitted the tax return yet. I am going to talk to the accounts department at my school tomorrow to get clarification on the way they reported the amounts. Thanks again.