1098-T Line 5 includes scholarship applied for Spring '22. Do I say yes on "Did Your Aid Include Amounts Not Awarded for 2021 Expenses?"

Forum|Forum|4 years ago
March 18, 2022
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On my 1098-T, my school included a $2000 scholarship that was applied to Spring 2022 in the amount on line 5 (Scholarships or grants).

It was used towards room and board for Spring '22. I paid my Spring '22 bill in 2022.

On the question "Did Your Aid Include Amounts Not Awarded for 2021 Expenses?" should I say "yes" and list the $2000 there?

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Best answer by KrisD15

No,

Expenses paid (and the scholarships that pay them) in 2021 for the first three months of 2022 are declared in 2021.

Scholarships used to pay room and board are taxable income for the student.

Additionally, if you are claimed by someone as a dependent, that Taxpayer should be using the 1098-T on their tax return if it generate an education credit. If it only generates income, the income is claimed by the student.

KrisD15Answer

No,

Expenses paid (and the scholarships that pay them) in 2021 for the first three months of 2022 are declared in 2021.

Scholarships used to pay room and board are taxable income for the student.

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Hal_Al

Employee

Q. 1098-T Line 5 includes scholarship applied for Spring '22. Do I say yes on "Did Your Aid Include Amounts Not Awarded for 2021 Expenses?"

A. Maybe. You need to know what expenses are represented in boxes 1 & 5 on the 1098-T. As @KrisD15 said, expenses paid (and the scholarships that pay them) in 2021 for the first three months of 2022 are frequently shown on the 2021 1098-T. So, if box 1 and box 5 are matched, you do not make any adjustments.

But in your adjacent post, you say the school applied a $2000 scholarship in December for my Spring '22 semester towards room and board. Room and board are not include in box 1 (only tuition and fees) of a 1098-T (but scholarships designated for R&B are included in box 5). So, in that case you don't want all the box 5 amount applied to 2021 and would answer that question yes.