The scholarship amount on my 1098-T includes a 2023 scholarship issued in late Dec 2022. Can I account for that to avoid paying taxes on money withdrawn from my 529?

Forum|Forum|3 years ago
February 24, 2023
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My daughter's graduate program started on Jan 2, 2023 so her spring scholarship for 2023 was issued in late Dec 2022. The

TurboTax Premier Online

mglauner

You can make an adjustment to the Scholarship Amount reported in Box 5 of the 1098-T in Box 6 (screenshot).

However, the 1098-T does not have to be entered into your return as long as there is not Excess Scholarship Income to report as taxable income.

Save documentation that an amount included in Box 5 is actually for 2023.

Here's more detailed info on Form 1098-T.

Hal_Al

Employee

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 2022 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.