Differing info on 1098-T and W-2

Forum|Forum|4 years ago
January 26, 2022
3 replies
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Hi,

I attend and work for a university, and receive employer tuition benefits as a result. This benefit amount is automatically applied to my W-2 as taxable income (minus the tax-exempt $5250) and listed in my 1098-T as scholarship. I'm running into the issue though that my 2021 W-2 and 1098-T include 2 different amounts. My W-2 includes only fall semester '21 benefits as income, but both fall semester '21 and spring semester '22 benefits are included in the 1098-T as scholarship amounts. Getting confused as a result on how to best enter my 1098-T because half of the "scholarship" won't be shown in my W-2 until next year.

KrisD15

When you enter the 1098-T, there is a screen that asks if any of the aid reported on the 1098-T is for a different year. Answer "Yes".

You will need to keep good records and have an understanding of which funds are going to which year..

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KrisD15

You will be able to enter the 1098-T and then select that some of the aid was for a different year.

It will come up during the Education Interview.

Please go through the Education section and interview carefully.

Keep records with your tax file of which funds are for which year.

For 2021 you can claim expenses paid for 2021 and/or the first three months of 2022.

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Hal_Al

Employee

@SaiS "This benefit amount is automatically applied to my W-2 as taxable income (minus the tax-exempt $5250) and listed in my 1098-T as scholarship." The taxable part should not be included in box 5 of the 1098-T. Reduce the box 5 amount by that amount when you enter it in TurboTax.

Yo will later be aske if you got employer assistance. Don't duplicate the $5250. If it's already included in box 5 of the 1098-T, don't enter it again. Don't enter the W-2 taxed amount at that screen, either. It's not TAX FREE assistance.

The 1098-T is only an informational document.

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 2021 expenses".