Filed my 1098-T but now owe a balance to state of MD and VA

[chrisl56]

I am currently still in college and realized I could add in my previous 1098-T forms in hopes of receiving a tax credit/break. The money I entered was paid for tuition as well as combined with loans that were used on books and materials, fees, etc. I was hoping the amending process would be simple, as that was all I wanted to change, I didn't want/or intend to make changes to my federal and state taxes, however, I think TurboTax is under the assumption that the money I entered was Gross Income, and I now have to pay $71 to the state of VA and $161 to the state of MD. I'm not a tax guru but can someone explain how this is possible or allowed? How does adding the expenses I paid for tuition and scholarships/grants I received suddenly require me to pay more money to MD and VA?

[KrisD15]

To clarify, are you only enter the 1098-T for one year

What is in box 1 and box 5

Are you a dependent?

Did you already file and are doing this as an amendment?

[chrisl56]

Yes, I pulled up my 1098-T for 2023 and entered that, maybe that was my first mistake and I should've used 2022's? $15k+ for Box 1 and around 10 for Box 5. And yes/no, I am full-time but 25 so don't think I can claim dependent anymore. And yes I already filed back in February, I just wanted to make a slight change and add my 1098-T's as an addition.

[AmyC]

First, you can only add forms marked for the year that you are filing. So 2023 1098-T is the only form you can add to your federal and state taxes that you are amending. When you amend your taxes, you are changing them. 

Second, you have expenses greater than scholarships so it should be creating a tax credit of some sort unless your income is too high. See What education tax credits are available? 

If your scholarship was more than expenses, you would have taxable income and owe the states. That is not what you typed. You said over $15k for box 1 and only $10k for box 5, scholarships. $15k is bigger than $10k so you should not have income or extra tax.

Review your entries. Be sure the numbers are typed in correctly, all used for books, tuition, qualified expenses, not used for room and board or other expenses.