Education Expenses - Tuition vs Other Expenses in interview detail

Forum|Forum|3 years ago
March 3, 2023
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Working on Education expenses. I'm currently on "Enter (name) Education Expenses" page. I previously entered my 1098-T box 1 amount of $9095 which shows as "Tuition and Enrollment Fees". I see "Room and Board" as another line item, so based on my understanding that the 1098-T does not include room and board, I was going to enter the appropriate amount ($3532) based on my detailed billing statement. It appears that these values will be added to come up with a total education expense. So, in my case, if I add the room & board amount of $3532 to the 1098-T amount of $9095, the sum exceeds the grand total which I paid to the university last year ($9468). That is leading me to believe there is more than just "tuition" in my 1098-T amount. Am I interpreting this incorrectly?

KrisD15

I don't know what you paid to the school, but Box 1 on a 1098-T does NOT include Room and Board. It only reports what was PAID as tuition and fees to the school.

Box 5 reports any scholarships that posted in 2022.

Room and Board would only be relevant if you took a 529 Distribution and entered a 1099-Q from that distribution.

Tuition expenses, as well as books and supplies (books and supplies would not be listed on the 1098-t unless they were purchased directly from the school, not just the bookstore) may be used to offset a scholarship (make a scholarship tax-free) OR for an education credit.

Room and Board cannot be used for a credit and cannot make scholarships tax-free, but CAN make a 529 Distribution tax-free.

Pub 970 explains much more

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ocoloramaAuthor

I listed the total amount paid to the school - $9468. It's not much more than Box 1 - $9095. I understand that Box 1 isn't supposed to include room & board. (as I stated). That's why I am reaching out to try to understand why the 1098-T shows what it does and how to proceed with these expenses. Should I change the amount I enter for the 1098-T? Something is wrong somewhere!

Hal_Al

Employee

Not everything you paid to the school is a Qualified educational expense (QEE). The extra $373 (9095 - 8468) is most likely fees (e.g. student activity fee) that don't qualify. Unless you know otherwise, don't change the box 1 amount when you enter the 1098-T.

Unless you entered a 1099-Q (529 plan distribution) earlier, you usually don't get an entry point for room and board (R&B). Even if you enter R&B, TT will not use any of it to claim the education credit.

If you entered scholarships, TT will ask how much of the scholarship was used for room and board. Be sure you didn't enter R&B there (unless you want that much of the scholarship to be taxable (to the student, not you)