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April 10, 2023
Question

Scholarship Payback

  • April 10, 2023
  • 1 reply
  • 0 views

Hello,

 

My wife and I are filing our taxes jointly this year. She is currently in a part-time graduate program for which we are trying to prove that we paid the full year's tuition.

 

For the first semester, she had a learning scholarship benefit from her work however upon leaving the company she was required to pay it back through a collection agency. In her current 1098-T it states that the first semester was a scholarship, when in fact we ended up paying both semesters entirely. We tried contacting her school to get an adjusted 1098-T but they told us they can't because on their end it appears that her previous employer paid the semester.

 

We have a letter requiring payback from her previous employer as well as confirmation from the collection agency of the completed payment. We're just wondering how we can prove that we ended up paying the full amount to get the most deductions possible? What would be the best way to go about this?

 

1 reply

KrisD15
April 11, 2023

After you enter the 1098-T,

go to the "Scholarship/Grants (for all schools) and select Edit 

The scholarship listed in Box 5 should be listed on that screen

Click Continue

On the next screen select "YES" to "Did Aid Include Amounts Not Awarded for 2022 Expenses?" 

Enter the amount you had to repay. 

 

Continue

The scholarship won't count for 2022.

Be sure to keep proof of the repayment with your tax file 

 

 

 

 

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