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1098-T Box 1 Empty

Hello everyone! I am currently completing my taxes, and has a question regarding my 1098-T, if anyone could help. I graduated back in May 2025, and like many other graduates I'm having an issue with the reporting periods making it look like my $20,000 in scholarships are unreported income which is not true, and it's making me owe a lot of money I know I don't need to pay. I even went back into all of my itemized statements from when I started college and wrote it all down, and none of my scholarships in any semester ever went past the eligible expenses. Even if I just used tuition alone and not the fees, it still would not have gone past. I've seen some people say you can just leave the 1098-T out, and I am not trying to get the tax credit, I just want to make sure that if I leave the 1098-T out of my return that it won't flag anything. Any guidance on this would be greatly appreciated. Thank you so much!

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2 Replies
AmyC
Employee Tax Expert

1098-T Box 1 Empty

If the scholarship  was to cover room and board, it does become taxable income. If it covered a prior year's education expenses, you should amend the prior year and claim it there. This could affect any education credit claim last year.

 

The 1098-T is an informational form rather than a tax form which is what allows you to move that scholarship money to the correct year.

 

The IRS requires you to report all worldwide income, in this case, you get to pick which year and how (or if)  it is taxable. 

 

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1098-T Box 1 Empty

Q. I just want to make sure that if I leave the 1098-T out of my return that it won't flag anything?

A. Yes, you do not have to enter the 1098-T.  The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. 

 

Nothing will be flagged that wouldn't be flagged if you did enter it. If you do enter the 1098-T, and follow the interview carefully, TurboTax (TT) will conclude that you don't qualify for a credit and none of the scholarship is taxable.  But none of that info will be sent to the IRS. 

 

Here's a post on the five main points on the  1098-T:

https://ttlc.intuit.com/community/college-education/discussion/re-what-do-i-do-with-form-1098t/01/37...

In particular, note:

1. That the 1098-T your enter is not sent to the IRS

2. There is a way for students, on scholarship, to get a tuition credit. 

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