Received one W2, one 1042-S, and two 1098-Ts - Taxes are owed.

Forum|Forum|11 months ago
April 10, 2025
2 replies
0 views

Good day, y'all.

So, I have a W2, 1042-S, and two 1098-Ts.

The moment I insert the 1098-Ts into TurboTax I go from having a refund to owing several thousand dollars in taxes, both federal and state.

What am I doing wrong?

TurboTax Premier Online

DaveF1006

It depends. Do the 1098T have amounts in Box 5 that are greater than the amounts in Box 1. if so, you are being taxed on excess scholarship amounts.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Hal_Al

Employee

Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books 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.