Grad Assist payments went towards tuition

Forum|Forum|5 years ago
February 13, 2021
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Hi! I am working on my daughter's taxes, and have a question about her 1098-T. She worked as a grad assistant her last semester, and the payments went straight to her student account to cover tuition. When all is said and done, I'm am showing that she owes $451 in federal taxes. Box 1 is $200, Box 5 is $13K. I just want to be sure I am doing this correctly before I file. Seems wonky that she owes that much. Thanks in advance!

Not A Product Question

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.

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, by both you and the scholarship.

If you claim the tuition credit, you do need to report that you got a 1098-T or that you qualify for an exception (the TurboTax interview will handle this)