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1098-t for daughter

Forum|Forum|2 years ago
January 29, 2024
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ok so i have my daughters 1098-t she has box 1 10623.39 and scolarships of 15250

i see on the email they sent it appears for both semesters it is much higher for tuition. why is it so low on 1098

also she is my dependent when i enter 1098 on my tax it says she needs to claim like 4000+ as income.

so i did her tax return she made 758 dollars in a job last year and when this is added to her tax return it then say i can not file head of household Is that correct because her income is now over 4758 dollars for 2023? She did not pay half of her living expenses.

Also does that mean i do not file the 1098 on my tax return but enter it on hers? just to be correct to add the income to her return

Best answer by KrisD15

No.

If the student is your Qualifying Child, the income would not matter.

(if she is your Qualifying Relative the income would matter, but a Qualifying Relative would be if she was not related to you as your child. Since she IS your child, (under 24 and a student) as long as she did not supply more than half her own support, her being your dependent would not change)

If you are saying that the tuition paid in 2023 was more than 10,623, you'll have to ask the school why the 1098-T reports a different amount in Box 1 on the 1098-T. Did the school bill for the 2023 winter term in 2022?

If there was an error reporting the 1098-T, you can adjust the amount on the 1098-T screen.

You can only claim what was paid in 2023. School years and calendar years cross, so look over the payments carefully.

Since the 1098-T is showing 10,623 as tuition paid and 15,250 as scholarship received, 4,627 would be considered as income of the student. (DON'T FORGET ABOUT BOOKS AND SUPPLIES)

Does this seem to make sense? Did the student get extra money and perhaps pay room and board with the extra funds?

Whatever the student received in scholarships that was not used for tuition, books, fees, and supplies is taxable income for the student.

Yes, if the 1098-T does not generate a credit, it is not used on your return.

If the 1098-T generates taxable income, that is used on the students return.

If the student earned 758 wages and needs to claim 4,627 scholarship income, the student should not be subject to a tax liability and might not need to file a return unless she expects a refund of any withholding on her wages.

Scholarship income is sort of funny, not really earned, but doesn't count as unearned for the filing requirements of a dependent.

Be sure to select "Someone else will claim me" for your daughter on your daughter's return in the "My Info" section.

Be sure to claim your daughter as under 24, a student and not supplying more than half her support.

If she was OVER 24 in 2023, she would not be your Qualifying Child.

IRS Pub 501 page 4

KrisD15Answer