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anabelmariee
New Member

What do I do if I forgot to add my 1098-T?

 
1 Best answer

Accepted Solutions
DawnC0
Intuit Alumni

What do I do if I forgot to add my 1098-T?

You can add it in now if you have not filed yet.

However, if you have already filed, you can file an amended tax return and include the 1098-T later.  The software is not ready yet; it will be available next month.  So, you can come back and see about filing the amendment then.  If it turns out that you don't qualify for any education credits, or there is not scholarship income to claim, then you do not need to file the amendment.  

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3 Replies
DawnC0
Intuit Alumni

What do I do if I forgot to add my 1098-T?

You can add it in now if you have not filed yet.

However, if you have already filed, you can file an amended tax return and include the 1098-T later.  The software is not ready yet; it will be available next month.  So, you can come back and see about filing the amendment then.  If it turns out that you don't qualify for any education credits, or there is not scholarship income to claim, then you do not need to file the amendment.  

jandtax
Returning Member

What do I do if I forgot to add my 1098-T?

My son just filed yesterday electronically his federal tax 1040 and didn't included his 1098-T which has scholarship money on that.  Assuming he does have to include it, does he really have to wait 1 month to file an amended federal tax form?   Also will he have to amend his Michigan state filing as well?  He was going to mail the state tax form in.  Should he still mail that in before the deadline and then send in an amended State form as well?

 

Dale Jandernoa

AmyC
Employee Tax Expert

What do I do if I forgot to add my 1098-T?

If box 5 is bigger than box 1, you will need to include the form and determine how to move the money about.

 

Moving forward, you have two options for how to handle this income.

  1. Most people subtract box 1 from box 5 and enter the difference as income. 
  2. The other method is to actually increase your income and tax liability a little but dramatically increase your education credit.
    • Per IRS Pub 970, just two conditions for choosing this option exist: 

      "[A] scholarship or fellowship grant isn't treated as tax free to the extent the student includes it in gross income and either of the following is true. 

       

      • The scholarship or fellowship grant (or any part of it)

      must be applied (by its terms) to expenses ... other than qualified education expenses as defined in Qualified education expenses in chapter 1.

       

      • The scholarship or fellowship grant (or any part of it)

      may be applied (by its terms) to expenses (such as

      room and board) other than qualified education expenses as defined in Qualified education expenses in

      chapter 1" (emphasis in original).

So, method 2 is to claim that some of that box 5 money went to room and board. The excess of box 1 minus box 5 plus the "applied to other expenses" will become taxable income. The program will do the math. 

This brings your tuition and qualified expenses to MORE than the help you received FOR tuition. You now qualify for the education credits. Provided you qualify- see rules below.

 

Now, the question becomes, how much do you say was for other expenses? Pick a big number, that you can back up, like $10,000 for room and board. See what happens. Play with the numbers and stick with the ones that give you the best refund. Yes, the IRS actually recommends this method of madness.

 

If you don't qualify for credits, stick with option 1.

 

Please see:

 

What are examples of education expenses?

What are qualified education expenses for the American Opportunity and Lifetime Learning credits?

Why is my scholarship taxable?

Who is eligible to take the American Opportunity Tax Credit?

What education tax credits are available?

If a parent claims me as a dependent, can I claim the education tax credit?

 

As for amending the return, follow the directions below.

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

@jandtax

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