Question

College Scholarship

Forum|Forum|6 years ago
February 28, 2020
2 replies
0 views

My son had college expenses of $40,867 as documented in box 1 on his 1098-T. The 1098-T also correctly states in box 5 that he had a scholarship of $8,000.

Turbo Tax is telling me that the $8,000 counts as income because it exceeds his education expenses. This doesn't make sense. $8,000 is a lot less than $40,867.

The $8,000 should not count as income. Maybe I entered something incorrectly in Turbo Tax? How do I fix this?

M

MinhT1

Please make sure that you have correctly entered box 1 of your 1098-T. Tuition exceeds scholarships by a large amount and scholarships are not taxed and there is tuition left to claim education credits.

Under box 1, on the 1098-T screen is a radio button: This is not what (student name) paid to this school. Click on that and you will be given a chance to enter what was actually paid in 2019.

Please note that if your son is a your dependent, his form 1098-T must be entered on your tax return.

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N

NCPERSON1

the 1098T needs to go on your tax return - not his assuming he is your dependent

if you are not eligible for AOTC, probably no need to enter it in any event on your return - it won't have any impact