1098-T line 1 not correct

Forum|Forum|1 year ago
March 19, 2025
3 replies
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We got a 1098-T for 2024 where line 1 is less than the tuition and fees paid in 2024 (forget about R&B, meal plans, books). I understand that not all expenses (e.g., R&B, meals) count toward the AOTC, but we're not claiming the AOTC this year. However, we did take money out of the 529 (much less than what the university charged us, since the 529 is running low), and now over $2500 of that is being taxed as income. Where do I put the additional charges the university is not including on line 1? Or do I modify line 1 to be what we actually paid for allowable 529 expenses?

Ask the Experts - Changes II - Mar 2025

Best answer by mglauner

If you're not claiming the AOTC, and your 529 distribution was all used for Education Expenses, you are not required to enter either of these documents into TurboTax. Just keep them for your records.

Here more info on Form 1099-Q and Form 1098-T.

@anonymouse1

mglaunerAnswer

If you're not claiming the AOTC, and your 529 distribution was all used for Education Expenses, you are not required to enter either of these documents into TurboTax. Just keep them for your records.

Here more info on Form 1099-Q and Form 1098-T.

@anonymouse1

anonymouse1Author

So even though we filed the 1098-T the last 2 years, we don't need to fill out that portion of the 1040 this year? We're not claiming it since Roth conversions put us over the income limit.

mglauner

No, the 1098-T is not required to be filed, unless you're claiming an Education Credit.

@anonymouse1

anonymouse1Author

I entered "other educational expenses" but even after entering books and her room and board we paid to the university, the number shown on line 1 is less than the tuition and fees that we paid for spring, summer and fall tuition according to the statements we got from the school. Can I edit line 1?

mglauner

No, enter the 1098-T as issued. If Box 1 is larger than Box 5, you may qualify for a credit, although you said earlier that your income precludes this. If so, no need to enter the 1098-T. If you believe Box 1 does not reflect the correct amount of Tuition Paid, click the link 'this is not what we paid to the school' and enter the correct Tuition amount.

You can enter 'Additional Expenses' like books, fees, etc. in the Education section.

Her qualifying as your dependent has nothing to do with the 1098-T. If she was a full-time student for 5 months or more in 2024, and is under age 24, she is your dependent. If this applies, her income is irrelevant to your return. Check your entries for her in the Personal Info section.

@anonymouse1

anonymouse1Author

Thanks, I did click on "this is not what we paid" and I put in the books, and the room and board, and then I modified line 1 for all the tuition and fees we paid. I still can't figure out what they counted on line 1, because just tuition and and required fees are more than $754 more than that. Unless they are not including the $721 we paid but then she changed a class and they credited that to spring bill (we didn't take it out of the 529, we took thousands less than what allowable expenses were because we want to save the 529 funds for this year and next year). As I understand it, that is allowed since the spring semester started the first quarter of 2025. Should I also check that box? Or should I subtract the $721 from the actual tuition and fees we paid in 2024, and only include the tuition and fees *charged* for sessions starting in 2024?

anonymouse1Author

@mglaunerI lost my file (I think because I said don't save after I was trying to make changes, and I assumed it had saved the previous version). I just got done entering everything again, except the 1098-T and 1099-Q. But because we had those forms last year, when I switch to Forms, I can see them, but the number fields are blank. Should I delete these? The IRS is going to get them from the school and the 529 plan. I'm not sure if I should enter them and then add in other expenses that weren't listed on the 1098-T? Just so the IRS doesn't come back and ask why we took tens of thousands of dollars (about $10,000 more than what the school put on line 1 of the 1098-T) out of the 529?

Also, since our daughter earned more than $5050 in 2024, I went to Forms and checked that box, because of the huge Roth conversions (more than doubling our gross income), we didn't qualify for the $500 dependent credit anyway, but is this correct to check that box for her income? I can't uncheck the box "Qualifies as other dependent" on the 1040, but she just filed and checked that someone else *can* claim her as a dependent but that we *aren't*. Or does she need to amend her return (which she filed just to get her withholdings back) to say that we *are* claiming her as a dependent (because that's the default, even though we don't qualify for the credit)?

RobertB4444

The IRS does not expect to see a 1098-T from you since you don't qualify. They do not expect to see a 1099-Q from you because you used it all on qualified education expenses (although they could audit you and ask you to prove it. So it doesn't matter whether those forms are there or not.

If she claimed herself she would get her withholding back and that would be it anyway. So it makes no difference to her return.

@anonymouse1

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anonymouse1Author

So, I can't tell - the "forms" are there when I go to form view in TT - will they be filed with ) amounts, with our return if I leave them? If yes, should I delete them and how? Everything was copied over (less amounts) from last year's return.