I amended my tax return to add a 1098-T form and was told I owe $50 for federal and state taxes

Forum|Forum|1 year ago
February 23, 2025
2 replies
0 views

The tuition in box 1 was lower than the scholarship in box 5. I just wanted to make sure I did everything correctly for my taxes. Initially I filed my taxes early and had to amend it because the 1098-T came in the mail later. Would I owe money since the scholarship is larger than the tuition?

Best answer by Hal_Al

Q. Would I owe money since the scholarship is larger than the tuition?

A. Yes.

Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books, a computer and other course materials) is tax free. Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Room & board are not QEE.

If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses.

Kay98Author

Any help on this would be great, I'm just confused on why I had to pay back $50 for federal and $50 for state and turbo tax never really explained what it was for..

Hal_AlAnswer

Employee

Q. Would I owe money since the scholarship is larger than the tuition?

A. Yes.

If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses.

Kay98Author

Thank you so much for your reply, I was just really confused on that part.

Do you know why it would be $50 for federal and $50 state? I tried going back into TurboTax to find out why, but they had me download a Michigan individual income tax payment voucher form. Is it because I got my state refunded to the bank before they could make the changes when I amended?