1098-T Box 1

[drpai18]

My 1098-T Box 1 has $17,838.00 and Box 5 has $12,423.00. My W2 Box 14 has TUITION $6270.75

Am I eligible to claim a deduction or credit on my 1040 or should I be declaring income (and how much)?

Thanks.

[PattiF]

Any tuition benefits that you received from your employer that were greater than $5250 were included in Box 1 of the W-2. Just enter in your W-2 and 1098-T form into TurboTax exactly as the information is reported on the forms and TurboTax will walk you through steps to determine if you are eligible for any deductions or credits related to education. You do not need to do anything extra with this. See the section on Benefits over $5250 in link .Education and W-2 Tuition

[Hal_Al]

Did your employer remit the the tuition assistance directly to the school or did they reimburse you?  That is, does the box 5 (of the 1098-T) amount include any or all of the employer money?  If so, how much?

I don't think that TT will not pick up the amount from box 14 (W-2) and automatically do something with it.  You need to have a handle on your numbers.  Is the box 14 amount all or just part of the employer reimbursement.  Most likely $5250 is tax free and $1020.75 is already included in box 1 of your W-2.

[drpai18]

Thanks. I am a graduate student. Monies directly to school. Box 5 contains only scholarship monies.

[Hal_Al]

Ignore the box 14 amount, TT will not (most likely) do anything with it.

Subtract box  5 from box 1.  That is the amount of qualified educational expenses (QEE) you have. You may add any books or software, but only if you bought them from the school.  Reduce that amount by $5250 (not $6270.75).  The result is the amount eligible for the tuition credit.  If that is a negative number, that amount is taxable to you. 

17838 - 12423 = 5415.  5415 -5250 = $165 QEE

165 x 20% = $33 Lifetime Learning Credit  (Grad students are not eligible for the more generous American Opportunity Credit).

TT will do the math for you.  But, follow the interview carefully.