Box 1 1098-T wrong

Forum|Forum|6 years ago
June 6, 2019
6 replies
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The tuition at my university is $25,000. I received a $20,000 scholarship and paid $5000 out of pocket. My 1098-T shows $5,000 in box 1 and $20,000 in box 5. My accountant said I cannot take the opportunity credit because box 5 is larger than my box 1. I think my credit should be based on the $5,000 I paid out of pocket. Who is right?

Best answer by Opus 17

The 1098-T should show $25,000 in box 1. You will have to ask the school to correct it, and you may need to get an extension on your tax return deadline. If you report $25,000 in box 1 now, your taxes will be correct, but the IRS will start an inquiry when the form doesn't match your return. Your accountant should be able to right an authoritative letter to the school.

The 1098-T instructions for box 1 specifically say "The amount reported is not reduced by scholarships and grants reported in box 5." https://www.irs.gov/pub/irs-pdf/i1098et_18.pdf

Lisa995

Employee

This is really a question your professional accountant should be helping you with, but.....Did the school already show the tuition as being billed on the 2017 1098T and you got credit for it then?

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carol_tuckAuthor

The tuition was 25000 for the spring and fall of 2018. I paid 5000 in 2018 and they gave me a scholarship for 20000. They refuse to change it. They say they are following the instructions.

LMA1fromny

I am in a similar position with my son's 1098-T. They correctly report what was collected for TRE in box 1 which includes his tuition scholarship $, plus $10,000 in our money to cover the tuition not covered by the scholarship. The problem is in box 5 they reported his Tuition scholarship + his Room & Board scholarship. This makes box 5 greater than box 1 and it looks like he is being paid to go to school which is just not the case. We paid $10M for tuition (as well as books etc). The school says the form is accurate, but it is really comparing reporting apples in box 1 and apples & oranges in box 5.

Opus 17

Employee

A scholarship for room and board is taxable. Only a scholarship for tuition is tax-free. Your question does not make clear what you think the problem is.

LMA1fromny

The problem as I see it is I know I wrote a check for $10K for tuition and would like to claim the $2500 Education credits that we are entitled to based on paying more than $4K in TRE. But because box 5 is larger than box 1 it appears that I didn't pay that amount in TRE and can't declare anything. Is there a way to indicate on my taxes this reality that is not being shown by 2 figures on a 1098T?

Opus 17Answer

Employee

The 1098-T instructions for box 1 specifically say "The amount reported is not reduced by scholarships and grants reported in box 5." https://www.irs.gov/pub/irs-pdf/i1098et_18.pdf

Lisa995

Employee

If the tuition amount was shown as billed last year and they took the credit then as it being "paid" then there wouldn't be anything to get the credit on in 2018.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪