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

[pdxkelly]

Excellent.  Thank you very much for the quick response @KrisD15!

[nv_itli8]

I'm also in a similar situation. My school did not notify me about having a 1098-T Form or mail me one. I found one on my school account for the year 2020, for about $23.25 (in Box 1) and that's about it. Since I didn't receive anything else in any of the other boxes, does this mean I have to amend my tax form or does it mean I do not have to? 

[KrisD15]

It means you don't have to file an amended return. 

The $23 could be claimed as education expenses but would not make much difference, if any, and probably is not worth the time and effort to amend and claim it. 

[lexia19]

Hello!

I am a student who has received a full ride, and my college was explicitly clear I would not get a 1098 T form because of this fact.  During first year at college, I did not receive the 1098 T form and I have email proof from my school stating that they would not give me one.

This year I did receive a 1098 T form with Box 5 exceeding Box 1, and when I enter the information to TurboTax, it is being treated as if I have 20 grand in taxable income, which is not true since I am very much a low-income student. I have emailed back and forth with my school, and now I have email proof that I was never supposed to receive a 1098 T form because I am on a full ride but that they made a 16 dollar adjustment during the spring of 2020. This adjustment was because every single student got an activities fee refund since we were all sent home for the pandemic. Therefore because of this 16 dollar adjustment, they have given every low-income, full ride student a 1098 T form. They state this is because the 16 dollar credit reduced the amount reported in 2019.

Please let me know what I can do in this situation. I am lost and cannot afford a tax expert.

[ThomasM125]

@lexia19 I'm not sure what you mean by "full ride", but I assume it means you don't have to pay anything for your education. If so, then you would have taxable income equal to the amount of your scholarship income that was more than the cost of your tuition and other qualifying education expenses.

The box 5 amount less the box 1 amount on your 1098-T would be the reported amount of your scholarship income that needs to be reported on your income tax return as wage income, less any qualifying education expenses not included in the box 1 figure on your 1098-T form.

[AmyC]

If you have a parent claiming you, you may be able to change things up.  Please look at another of my answers for help 

@lexia19

[jean092253]

Can I file education credit from 2021 on 2022 taxes as well as 2022 education credit, many thanks

[xmasbaby0]

@jean092253 NO.   If you forgot to enter your education expenses on your 2021 return you can amend your 2021 return.  You cannot enter 2021 information on a 2022 tax return.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

[jashesproject]

When filling out my taxes, I entered my 1098-t, but the amount I paid to the school was more than what is represented in box 1, which is also less than what is listed in box 5. Where do I enter the extra expenses paid toward tuition and school fees, or does that not matter? Also, if my Pell Grant was used as taxable income but it is listed in box 5 on 1098-t, do I need to do anything? TIA

[MichaelG81]

If your Pell Grant was more than your tuition and school related expenses, the credits will not work, unless you use it for living expenses as well, and other qualified expenses. Read this article from the IRS. 

Under current law, a student may choose whether to allocate his Pell Grant (and many other scholarships) to tuition, fees, and course related materials or to living expenses when filing a tax return. This choice is important because if the student allocates his Pell Grant or other scholarships to tuition and fees, the scholarship reduces the amount of expenses eligible to be used to claim education-related tax credits. If allocated to living expenses, however, then the scholarship becomes taxable for the student. (Students have this choice regardless of how the school applies the scholarship.) Maximizing the total value of scholarships and tax benefits can therefore require complicated calculations of the value of the credit (to the student or to the parent, if applicable) relative to the tax liability resulting from counting the scholarship as income. Students may not understand that they have this option, and many would benefit from better guidance in their decision making.

After adding room and board expenses, make sure you go to personal income and enter the Pell Grant as Misc. Income>Other Reportable Income>Pell Grant and amount of Pell Grant.

You can find this in your income amount included after editing1098T; when entering room and board expenses, it says how much is taxable and must be included in income. Usually the outcome is more favorable than not depending on costs for your refund amount. It should go up if it was a pell grant and you report room and board under your 1098T expenses if you paid these, which most people do.

@jashesproject

[jashesproject]

@MichaelG81 The Pell Grant was less than my tuition and was used for living expenses (since I live off campus),  materials (computer and other essentials), and books needed for school. Since my Pell Grant is listed in box 5 on form 1098-t (presumably), how do I include it as taxable income?

Box 1: $2575

Box 5: $2786

Tuition and fees: $3625

Pell Grant: $2586

Loans: $3563

[MichaelG81]

After adding room and board expenses, make sure you go to personal income and enter the Pell Grant as Misc. Income>Other Reportable Income>Pell Grant and amount of Pell Grant and other scholarships as shown on 1098T page.

You can find your income amount included after editing your 1098T; when entering room and board expenses, it says how much is taxable and must be included in income. Usually the outcome is more favorable than not depending on costs for your refund amount. It should go up if it was a Pell grant and you report room and board under your 1098T expenses if you paid these, which most people do.

It should not be more than your Pell grant and other scholarships combined or the amount in Box 5, making a minimal effect on lowering your refund. But you may get more for doing it this way. Depending on income and other factor you can use the program to input your room and board and other qualifying expenses.

Misc. Income, other reportable income, Pell grant, amount.

@jashesproject

[student4]

Same situation, I forgot to add my 1098-t for my 2022. I have 11,942 on box 1 and 3247 on box 5. Do I have to amend my tax return? 

[CatinaT1]

You do not have to amend your return, but you will likely want to. You have qualified tuition paid which should qualify you for an education credit. I have included information on both education credits available and how to amend a return.

Here's how to amend your return.  

To avoid unnecessary delays, do not amend until your original return has been fully processed.   

The American Opportunity credit amount is equal to: 

• 100% of the first $2,000 of qualified expenses, plus 
• 25% of the expenses in excess of $2,000. 
• The maximum annual credit per student is $2,500. 

A student eligible for the American Opportunity tax credit: 

• The credit is only available for the first four years of post-secondary education (undergrad).  
• Enrolls in at least one academic semester during the applicable tax year. 
• Maintains at least half-time status in a program leading to a degree or other credential. 

  

For the Lifetime Learning Credit, there is no limit on the number of years you can use this credit for undergraduate, graduate, and professional degree courses. This includes ones to improve job skills. 

• The maximum credit is $2,000 per tax return. 
• Can be used when you're only taking one class. 
• You don't need to be working towards a degree. 
• None of the credit is refundable. 

[Bapu77]

What happens if my tuition was entirely covered by grants in 2022 and I did not file my 1098-T in 2023?