1098T form and income in box 1 w-2 form amount too high.

Forum|Forum|6 years ago
April 3, 2020
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I am in masters degree program working as a graduate assistant and all my tuition, room and board are covered by the school and I receive a stipend. I can't figure out how they came up with the total on 1098T box 1 and also I don't understand why the wages total in box 1 is so much more than my stipend. It looks like they count a portion of the scholarship they give me as income which is negatively affecting my state tax return resulting in a large tax due for $ that was not wages. I need some help figuring this out.

TurboTax Home & Biz Windows

KrisD15

They may have. It would be something you would need to speak with the school about.

Here is what the IRS says:

"Graduate Education

A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met.

• It is provided by an eligible educational institution.

• You are a graduate student who performs teaching or

research activities for the educational institution.

You must include in income any other tuition reductions for graduate education that you receive.

How To Report

Any tuition reduction that is taxable should be included as wages in box 1 of your Form W-2. Report the amount from box 1 of Form W-2 on Form 1040 or 1040-SR, line 1."

Scholarships used for room and board are almost always considered as taxable income.

IRS Pub 970

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