turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

syjoh96
New Member

What should I do if my refund significantly drops after adding additional 1098 Ts?

I am a college student that attends to primary university but have also taken supplementary classes at two other colleges. I have received 3 1098-T's for 2018. When doing my taxes I found that my refunds significantly dropped after adding additional 1098-T. So to summarize my question, 

a) I have 3 1098 Ts and that  b) my scholarship/grants EXCEEDS qualified tuition expenses and  c) When I add two of the 1098 Ts (one of them being the one with the scholarships, my refund is $X, but when I add the third one, it drops significantly

What should I do? 

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
JohnW15
Intuit Alumni

What should I do if my refund significantly drops after adding additional 1098 Ts?


Since excess scholarship money can be treated as taxable income on your return, many students see their refund go down, sometimes by a lot, after entering a second or third 1098-T, when scholarships exceed qualified expenses. 

This is because the TurboTax program starts you off with the full standard deduction, which is subtracted from the income you’ve entered so far. You don’t get this deduction with each additional 1098-T you enter. This means subsequent 1098-Ts will appear to be taxed more, but what’s really happening is that you’re getting a more accurate picture of your income.



syjoh96
New Member

What should I do if my refund significantly drops after adding additional 1098 Ts?

Hi, Thank you for your response!

My first 1098 T is my primary institution (full-time) and I receive all of my scholarships from this college.

My second and third 1098 T's are my part-time classes. I do not receive any scholarship/grants from these two colleges. But once I add my third college, my refund significantly drops.

Is that what is happening here?
JohnW15
Intuit Alumni

What should I do if my refund significantly drops after adding additional 1098 Ts?

Yes, that sounds like what's happening.  If you think that the figures might be wrong, I'd suggest that you go back and review the answers you entered for the education questions... just to make sure everything's correct.  Can't hurt...
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies