Tuition Remission Not Recognized?

Forum|Forum|5 years ago
March 23, 2021
1 reply
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I'm a bit confused. I'm a graduate student, and part of my aid is that I get tuition remission - this money is being used for only my tuition. I'm a full time student, this tuition remission is tax free for me. But when I submitted it to Turbotax, it's just claiming that this amount is scholarships. Do I need to just manually change the amount or is there somewhere that I can report that it's tuition remission? Also, in that case, would I also remove the tuition amount?

I'm super confused and could use some help...

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Hal_Al

Employee

Simple answer: just remove the tuition amount.

How was the tuition remission reported to you? 1098-T? 1099? W-2?

Usually it is not documented on any IRS form. In that case, you do not even enter it in TurboTax. As you said, it's tax free.

SebrosAuthor

The tuition and tuition remission was reported to me by a 1098-T. The 1098-T lists the full tuition amount that was charged in Part 1, while Part 2 lists Tuition/Fee Remissions.

Hal_Al

Employee

"The 1098-T lists the full tuition amount that was charged in Part 1, while Part 2 lists Tuition/Fee Remissions".

Box 2 is usually blank. There is nowhere in TurboTax to enter something from box 2. What's in box 5?

Does box 1 include the tuition remission amount? Does Box 5 include the tuition remission amount? If so, the school is treating the remission as scholarship. And you should too.

If, on the other hand, if box 1 includes the tuition remission amount, box 5 doesn't and the amount is shown in box 2; then you should reduce the box 1 amount by the amount in box 2, before entering. If that makes the box 1 amount zero and box 5 is also zero, just don't enter the 1098-T. It is only an informational document and there is no requirement that it be reported on your tax return.