purpose of "this is not what i paid to this school" ?

Forum|Forum|11 months ago
April 10, 2025
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I was filling out my 1098t and there apears to be another option under box 1 which says "this is not what i paid to this school". What is the purpose of this?

TurboTax Free Edition Online

KrisD15

The purpose is when a taxpayer pays but the payment is not listed on the 1098-T, this might happen when a payment or scholarship posts in December for classes that start in January and the school does not process the payment in time to include it on Form 1098-T. Box 1 would need to be adjusted up.

It could also be the other way around, Box 1 could list a payment that was made the previous year and needs to be adjusted down.

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Hal_Al

Employee

The 1098-T is just wrong, sometimes. So often that TurboTax has this standard feature to help the user adjust.

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 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 2024 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.