my daughter's 1098-t has the same amount in boxes 1 & 5, what to do?

Forum|Forum|4 years ago
January 30, 2022
2 replies
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My daughter is in high school but goes to college at the same time and it's paid for 100% by the school district. We got a 1098-t for her where both boxes 1 and 5 are the same amount. Since she works a part time job, she is filing a tax return and made $8611 and her tuition paid for was $4061. When we input that info on her return, she suddenly goes from getting a refund from the state to owing hundreds. We are her parents are claiming her as a dependent, does she even need to include this form on her taxes? And if not, do we as the parents include it on ours?

DoninGA

Employee

Since she is your dependent the Form 1098-T is reported on your tax return and Not on her tax return.

Hal_Al

Employee

Since the same amount is in boxes 1 & 5, of the 1098-T, you can ignore it. It does not need to be entered on either your return or your daughter's.

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 sometimes means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. This is not one of those times. Scholarships that pay for qualified expenses (Tuition) is tax free.

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T.