1098T

Forum|Forum|2 years ago
March 4, 2024
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My daughter received a 1098T with $15200 in Box 1 and $30200 in Box 5. She also paid $13200 in room and board. I want to shift some of her scholarship to income on her return and also $4k of expenses on my return. How do I do this?

TurboTax Home & Biz Windows

Hal_Al

Employee

Enter the 1098-T, on your return, with $4000 in box 1 and box 5 blank.

It can get tricky entering it on her return. Normally she enters the 1098-T, exactly as received. She will encounter a screen asking for the "amount used to claim the education credit". She should verify that that is $4000. If not, change it. She will also get a screen asking her to enter books and other course materials. A computer is an allowable expense. That will reduce the taxable amount. Room and board (R&B) are not qualified expenses for tax free scholarship.

Based on the numbers provided (not including books and a computer). $19,000 will be taxable ($30,200 - 15,200 + 4000). It will go on line 8r of Schedule 1.

A short cut is to enter the 1098-T on his return with box 1 blank and the taxable amount ($19,000 in this case) in box 5.