1098-T Box 1 blank

[brantha2]

University of Tampa changed the way they report Box 1, Payments. Spring semester payments are included in the year in which they are billed, (previous year), but Box 5, scholarships are reported in year of the semester. Since the 2022 1098-T does not have our payments listed in Box 1 it is telling me that we will have to pay taxes on the scholarships, Box 5. The University is no help at all. Can anyone help me with this? How can I take credit for a lot of tuition paid and not have to pay taxes on the scholarship?  Thank you!

[Hal_Al]

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2022 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.

[brantha2]

Thanks so much, so easy, now I can amend last years too!

[AmyC]

 Two things:

1. Scholarships are reported and taxed for the year received. The scholarship income stands.

2. Tuition is a moving target. You can file tuition paid during the year plus the first 3 months of the next year. The question becomes, did you claim the tuition in 2021 or can you claim it on 2022.   See page 12, What Expenses Qualify at IRS Publication 970, Tax Benefits for Education..

I see Hal_Al answer just popped and is right.

[brantha2]

right, thank you!

[brantha2]

Can I amend last year's taxes if I did?

[AmyC]

If you are claiming AOTC, you only need $4,000 out of pocket for the full credit. The LLC is 20% up to $10,000. Take a look at 2021 and you can amend, if needed. HOWEVER, the IRS says not to amend if it will not change your tax liability.

This means, you may not have to amend, just have the paperwork ready in case the IRS asks about either year.

Taxpayers can use the Should I file an amended return? to help determine if they should file an amended tax return.