Form 1098-T makes me owe money to the IRS?

Forum|Forum|6 years ago
June 3, 2019
1 reply
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I have typed in my form 1098-T exactly how it was and it calculated that I owed $4,000 to the IRS. This didn't happen last year when I did taxes and there is no reason for me to owe money on grants and scholarships.

TurboTax Free Edition Online

AmandaR1

Employee

Often in this situation, it's because some of your education expenses for your 2016 spring semester, were reported in December of 2015 and therefore on last years form. When you have grants that are greater than your total expenses, the excess will be taxable.

Basically, after you enter your form, there's a question that asked if any of your expenses were reported in the prior year. If the amount covers the excess grant, then none of it will be taxable. It sounds like this could be your situation as well. I walk through how to enter this in the software, in detail, at the following link: https://ttlc.intuit.com/replies/5691462

Kr22mart

Can you repeat how to do that the link is no longer active. I am in this situation.

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 possibly your student has taxable scholarship income. If you know that you have neither, just don't enter the 1098-T.

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 2022 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS