TT incorrectly handling scholarship as income on web version

Forum|Forum|2 years ago
February 28, 2024
1 reply
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Very straightforward. No 529s, no overlapping years. Full time grad student paying mostly from savings. Income on W2 of $4,500. 1098-T shows 23,500 in box 1 and 8,000 in box 5. Box 1 exceeds Box 5 so no taxable income. Turbo tax shows it as other income and carries it through to be taxable on a state return. I am pretty sure I can just leave the 1098-T out as nothing is taxable and I also know I am not going to get an education credit but prefer to know why it is doing this.

Any ideas why? Thanks

TurboTax Free Edition Online

AmyC

Employee

Clearly box 1 is greater than box 5. Not being able to see your program, I can only guess that something got marked that should not have which disqualified your educational expenses. As a grad student, you may qualify for the LLC.

The 1098-T is an informational form and is not required to be filed.

The credit and income limits:

For the full credit, your MAGI (modified adjusted gross income) is less than $80,000 ($160,000 if you're filing jointly)
For a reduced credit, your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you're filing jointly)
There is no credit given if your MAGI is above $90,000 ($180,000 if you’re filing jointly)

Reference IRS Q & A about education credits

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mk89Author

Thanks. Took the 1098-form out last night when it didn't work correctly. Put it back in this afternoon after I posted and it worked correctly. Nothing done differently other than a different day. Thanks for the quick response.