Box 5 in 2020-1098T is 0.00 and received Financial Aid in 2021 for Fall 2020 Semester

Forum|Forum|4 years ago
May 4, 2021
1 reply
0 views

Hello,

I received 2 grants from FAFSA in 2021 for Fall 2020 and Spring 2021 semesters as I filed FAFSA late. The Box 5 in my 2020-1098T form is 0.00. When filling taxes for 2020 with TurboTax, do I have to change Box 5 to the amount of grant that I received for Fall 2020 semester or leave it as 0.00?

Will the grant for Fall 2020 semester show on my 2021-1098T if I change the box 5 of 2020-1098T when doing taxes for 2020 by TurboTax?

TurboTax Premier Online

Best answer by Hal_Al

Q. Do I have to change Box 5 to the amount of grant that I received for Fall 2020 semester or leave it as 0.00?

A. It's optional; essentially a tax loop hole. Since some of the tuition in box 1 was covered by scholarship, reimbursed in 2021, you could just not count that tuition for the tuition credit. Or you could claim the tuition credit, based on that tuition amount. If you do claim the credit, based on that amount, you will have to declare that much scholarship as taxable in 2021.

Q. Will the grant for Fall 2020 semester show on my 2021-1098T if I change the box 5 of 2020-1098T when doing taxes for 2020 by TurboTax?

A. Yes. The school would have no way of knowing that you already reported it. But, you are not locked in to the numbers on a 1098-T. The TT interview will allow you to adjust the scholarship amount for "amounts not awarded for 2021 expenses".