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Hal_Al
Employee
April 21, 2020

The numbers in Turbotax (TT) were entered by you. TT starts with the amount in  boxes 1 and 5 of the 1098-T.  If box 5 is more than box 1, the difference is taxable income until you enter more qualified expenses (usually books and other course materials) to offset it. 

 

That said, 

The 1098-T is only any 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 deduction 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 2019 expenses".

 

If you're having trouble getting TT to "do the math"; just change the 1098-T entries to agree with your math.