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My scholarships and grants were used solely for tuition. On my 1098-T my box 5 is less than box 1. I have never seen a check from my school. Why am I being taxed?

Forum|Forum|7 years ago
June 5, 2019
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On my 1098-T My box 1 says a larger number than my box 5. I have not received any money for room and board. I rent a house and have had to pay for everything out of pocket. I also only use books that are required for classes. All the money from my scholarships and grants have been used for tuition. So, why am I being charged taxes for them?

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Best answer by KrisD15

If Box 1 "What was paid to the school" is larger than Box 5, there should be no taxable scholarship income, UNLESS (when you clicked "Maximize My Credit") the program calculated that taxing part of your scholarship will result in a credit that is larger than the tax.

Preview your 1040 to see if you are getting an Education Credit.

If you are still unsure, please submit a new question with details, such as the numbers on the 1098-T and the amount of tax/credits reported on the 1040.

KrisD15Answer

If Box 1 "What was paid to the school" is larger than Box 5, there should be no taxable scholarship income, UNLESS (when you clicked "Maximize My Credit") the program calculated that taxing part of your scholarship will result in a credit that is larger than the tax.

Preview your 1040 to see if you are getting an Education Credit.

If you are still unsure, please submit a new question with details, such as the numbers on the 1098-T and the amount of tax/credits reported on the 1040.

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