Can someone explain the 1098-T form? My university only included information about scholarships or grants, and no cost of tuition or anything. Thanks

Forum|Forum|5 years ago
February 12, 2021
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TurboTax Premier Online

ReneeM7122

Form 1098-T is used by college students and their parents to report information that can be used to claim certain education credits.

Colleges and universities report the total dollar amount a student or their parents paid for qualified tuition and expenses during the tax year.

If you paid tuition out of pocket (outside of scholarships and grants), you might want to contact the school and ask why it was not included.

If you did pay out of pocket, then the Tuition and Fees Deduction can allow you to deduct up to $4,000 in education expenses if you qualify. You don't need to itemize to get the deduction.

There are two credits that TurboTax will also help you determine if you qualify for - the American Opportunity Credit or the Lifetime Learning Credit.

Hal_Al

Employee

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 your student has 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. 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. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2020 expenses".