1098-T Scholarship paid in Jan for Fall Semester

Forum|Forum|4 years ago
February 12, 2022
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1098-T for Fall Semester 1st YR student. Shows the tuition paid in full.

NY Community College Tuition for Fall 2021 Semester $2,370.00

Jan 2022, NYS Excelsior Scholarship paid $1,950 for the Fall 2021 Semester.

Of course this payment does not show up on line 6 because it was paid in 2022.

Do I enter the 1098-T form as it is? and then enter the Scholarship funds on a different line?

This is what i would like to do. Then the IRS won't give me a financial credit that I do not deserver.

However, .. If I enter it there.. I know I am going to get a 1098-T form next year. The form I get next year will show $1995 on line 4 for Adjustments made for a prior year.

That will also goof things up. That would cause me to claim the same $1995 scholarship two years in a row.

Are other waiting until next year to report the scholarship when it appears on 1098-T in line 4?

TurboTax Premier Online

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. You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. But, If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception.

You'll have to make entry adjustments this year and next year*. Don't worry about it, it's very common. The simplest thing to do is just change boxes 1 & 5 to what your records say. Lying to TurboTax to get it to do what you want does not constitute lying to the IRS. What you enter is not sent to the IRS.

*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".