1098-T form problem

Forum|Forum|4 years ago
April 30, 2021
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Hello! I'm an international master's student filing as a resident due to my time in the country. I get my tuition fully covered through a graduate assistantship. I received some money from my university through their COVID relief fund that came from donations, not the CARES act. Because of this, box 5 on my 1098-T is about $1300 higher than box 1. When I input this form on the system, my tax return of around $500 turns into me having to pay $3000 back in taxes. I'm confused by how I'd have to pay so much more for money I received as COVID relief, even more than I actually got. Any advice on how to fix this problem? When I don't enter this form I get a much higher tax return. Thanks!

TurboTax Deluxe Online

AmyC

Employee

Box 5 minus box 1 is $1300 of income added to your return. That should not cause a big jump like that. Take a look at your tax forms before and after the 1098T and compare them. There could be some credits you are losing with that bump in income. See How do I preview my TurboTax Online return before filing?

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AmarantaAuthor

Thank you! That did help and gave me a return instead of having to pay more taxes. The return isn't as high as it was before I entered the 1098-T form, though. Those $1300 that are higher on box 5 are COVID relief funds that came from donations to my university. Is there a way to signal that in the system in case it gives me some additional tax credit?