1098-T / Tuition Remission

Forum|Forum|5 years ago
May 24, 2020
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Ultimately I'm trying to determine if I am eligible for any credits, etc on my taxes and to make sure I'm filling things out properly. I worked at a university and was taxed on all of my tuition above $5250, with the exception of a small scholarship that seems to be non-taxable as it went solely towards tuition.

It is easy to enter what is in Box 1 & Box 5 on my form, but then there are additional questions. So I am trying to determine the "amount I paid" - should I be including the total amount I was taxed on + the fees I paid for out of pocket? In other words, I paid fees out of pocket, and the rest of the tuition assistance from my employer was added to my paycheck every month and taxed. While I only wrote a check for the fees, the other $8k+ was added to my paycheck and increased my "income" (but decreased my take home).

On my 1098-T (with approx #'s): Box 1 says $5000. Box 5 says $15,000. I know for 2019 I owed: $15,000 (total tuition) - $5250 (govt allows tax-free) - $2000 (scholarship), so approximately $8,000 was added to my paycheck and taxed. Does this mean I paid $8000 + fees? Or am I only supposed to include the fees I paid? Is there someplace I should be indicating how much was added to my paychecks? Thank you!

Also: I was a graduate student and not claimed as a dependent by anyone.

Hal_Al

Employee

Q. Should I be including the total amount I was taxed on + the fees I paid for out of pocket?

A. Yes.

Q. Does this mean I paid $8000 + fees?

A. Yes

Q. Or am I only supposed to include the fees I paid?

A. No. 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 deduction or possibly you have taxable scholarship income. If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T.

Q. Is there someplace I should be indicating how much was added to my paychecks?

A. Yes. 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.

But that's going to be messy and complicated. The simpler workaround is just change the box 1 and box 5 amounts at the 1098-T screen, in TT, to agree with your records. Your "real" scholarship amount is $5250 + 2000, not $15K. The tuition paid is (apparently) 5250 + 8000 + fees.