I forgot to file my 1098-t form, what will happen?

[gwinch]

Yeah, you report it under deductions and credit which you can click from the "Tax Home" button on TurboTax, in this section, it will ask if you have included it in your income already and you choose if you did or did not. So you probably say NO to that. 

[Sburtulato]

As long as box 5 is lower then box 1, we do not need to amend?

[MarilynG1]

@Sburtulato  Correct, if Tuition Paid is larger than Scholarships/Grants, you probably don't need to Amend your return. 

The Education Credit is to help you with 'out of pocket' Education Expenses you paid. TurboTax would consider the difference between Box 5 and Box 1 to be what you paid, plus any Other Education Expenses you added. 

Click this link for info on Do I Need to Amend?

[klinx82]

My 1098T has box 5 for scholarships and it is more than box 1. Does that mean I would have to file and amendment if I forgot to add this form?

[LinaJ2020]

Yes, you need to amend to add.  When you have received more scholarship than tuition paid, you would need to pay taxes on the difference.  If you have already filed, you will have to wait until Feb 12 when the IRS opens the gate. You cannot return to the program to make any changes before that. 

If your return got rejected for whatever reasons, you can return to the program to make the correction along with other changes.  You do not need an amendment 1040-X.

If your return has been accepted, you will have to amend your return by filing a form 1040X.  You should not try to amend your return until it has been fully processed and you have received your refund or your payment has cleared.

Beginning with the 2019 tax year, you can e-file amended tax returns. If you used TurboTax to prepare Form 1040-X, follow the software's instructions to e-file the amendment.

To see how to amend your taxes, click here: 

Steps to amend in TurboTax

How to file amendment

[Greg_1014]

I forgot to file my 1098-T in both 2018 and 2019 and I did not take the AOTC either year.   I was working on an amended return and it said I had a taxable event in 2018 of $1532 ("based on the educational expenses you entered, the student beneficiary must report $1532 of taxable income from this distribution") and  2019 of $8721 ("based on the educational expenses you entered, the student beneficiary must report $8721 of taxable income from this distribution").  It looks like I will receive a $2500 refund both years but I will have to file an amended return for my son in both years (he did not pay any taxes in either year...2018 - $2 dividend income only and 2019 - $1271 AGI).  Because of his low income, will there be a penalty for filing an amended return for him, and would it be worth it to file amended returns for me and get the $2500 refund each year?  Additionally, all payments from the 529 plan were made directly to the University for tuition related expenses.  Thank you for your help

[MaryM428]

You are correct to file amended returns so that you can claim the $2,500 for each year and also correct to amend your son's returns.  Any penalties for those relatively low amounts of income will be low and may be completely forgiven.  When you file the returns a screen will come up asking questions to see if the penalty will be forgiven.  

 

[Greg_1014]

Thank you for your thoughts...

[Greg_1014]

I apologize but I have one last clarification.  My wife and I are the owners of the 529 plan and my son in the beneficiary.  All payments were made directly to the University for qualified educational expenses.  Does that change how I amend my return and my son's return in 2018 and 2019?  When I input both the 1098-T and 1099-Q on my amended return, I received the "tax due" amounts for each year listed above (which you said to add to my son's return).  As I read further into this rabbit hole, I'm wondering if I am even filing correctly.  Thank you again for your help,

[Greg_1014]

One last piece of information, my son is listed as the beneficiary on both the 1098-T and 1099-Q.

[MarilynG1]

@Greg_1014  Overall, did your 529 distributions exceed Qualified Education Expenses?

If not, you don't need to enter the 1099-Q in your return, just keep it for your records.

Click this link for info on Form 1099-Q. 

However, if your 1098-T shows a larger amount for Scholarships than for Tuition, there may be Taxable Scholarship Income.  You are correct that the 1098-T would be reported on the student's return (if they are required to file a return). 

If not, you may still qualify for an Education Credit.

[Greg_1014]

The 2018 1098-T Box1 is $23407.00 and  box 5 is $1750.00  / 2019 1098-T Box 1 is $47291.20 and box 5 is $1250.  Total payments to the University in 2018 for qualified education expenses (1099-Q) was $20807.00 for the fall semester.  Total payments to the University in 2019 for qualified education expenses (1099-Q) were: $21602 - Spring 2019 / $21526 - Fall 2019 / $11204.20 - Summer 2019 / $7726.80 - Spring 2020.  Spring 2020 was paid on 12/31/2019.  The reason it was much small is due to the additional payment in Spring 2020 of the Florida PrePaid Plan ($14000.40 which I received a 1099-Q for 2020).  I just want to make sure I fill out my amended return correctly for 2018 and 2019 to receive the $2500 education credit which I forgot to take in those two years.  I hope this all makes sense...

[AmyC]

Yes, the box 1 amount is much larger than box 5. You have a 1099-Q that comes into play as well.I am going to recommend you look at another of my answers for help with making sure you have the right numbers in the right places.

Once you have your numbers correctly manipulated, you can amend. 

Once your return is accepted and the finances are settled, you can file an amended return. 

• Save a copy of the original return before doing an amended return. See: 
  • how to file an amended return.
  • I need to amend my state return.
  • Can I e-file my amended state return?
  • Can I e-file my 1040X to amend my return?
• Pay additional tax. Taxpayers who will owe more tax should file Form 1040-X and pay the tax as soon as possible to avoid penalties and interest. They should consider using IRS Direct Pay to pay any tax directly from a checking or savings account for free.
• Use separate forms if amending more than one tax year.
• Track amended return status online. Taxpayers can track the status of their amended tax return in English and Spanish using Where’s My Amended Return?  Amended returns take up to 16 weeks to process and up to three weeks from the date of mailing to show up in the system.

@Greg_1014

[pdxkelly]

I'm in a similar situation: I did not included either my 1099-Q or 1098-T information on my 2018 or 2019 returns. After beginning the process to amend my 2019 return and entering in all of that information, I still owed no additional taxes as it appeared that the distributions from the 529 QTP were less than payments on the 1098-T and the additional out-of pocket expenses combined. No scholarships. The information/situation for 2018 will be the same.

In addition, our AGI was above the $160k threshold (MFJ) I had read earlier.

As such, and based upon all of the other responses, I do NOT need to file amendments for 2019 or 2018 returns, correct?

[KrisD15]

Correct. If the forms do not constitute a tax liability, they do not need to be reported. 

In your situation, you do not need to amend your return and you do not need to report the 1099-Q nor the 1098-T since the education expenses offset the distribution, there was no other financial aid, and you are not eligible for a credit 

. 

@pdxkelly