Where to show 1098-T

Forum|Forum|1 year ago
March 21, 2025
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My daughter is a full-time college student. I am showing her as a dependent on my returns. She received a 1098-T from her university. Box 1 is about $26K. She got a scholarship (which was used to reduce tuition) and, hence, Box 5 is about $24K. She will be filing her returns as she has income from other sources. Questions:

1. Do I show 1098-T on my returns or hers?

2. When I try to enter the 1098-T on her returns, TurboTax increases her tax liability due to the scholarship? But, shouldn't this scholarship money be non-taxable as it was used to pay for tuition? We never received the money in our hands. The university simply reduced her tuition by the scholarship amount.

Best answer by Vanessa A

You can report the 1098-T on your return and claim an education credit if eligible.

If box 5 is less than box 1, then you do not need to report this on her return if every bit of it was used to cover her tuition, then none of it is considered taxable income to her.

If it is increasing her tax liability, please double check your answers so that you are not saying that it was used to pay for room and board. If it WAS used to paid for room and board, then this would become taxable income and would increase her tax liability.

Vanessa AAnswer

You can report the 1098-T on your return and claim an education credit if eligible.

If box 5 is less than box 1, then you do not need to report this on her return if every bit of it was used to cover her tuition, then none of it is considered taxable income to her.

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