1098-T Box showing up as 1040 Box 1 income...why?
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

1098-T Box showing up as 1040 Box 1 income...why?

My daughter (filing single and not as our dependent) got a 1098-T form in 2018 and 2019 (which showed how much tuition she paid and how much she received in grants) . In both cases, Box 1 (tuition she paid) exceeded Box 5 (grant money).

 

In 2018's 1040 tax return, Box 5 amount on 1098-T was not included under wage, salaries income (box 1 of 1040 form) but in 2019, it was!  Why?  How do I fix that because the support form on TurboTax is filled out the same was as last year's return.

4 Replies
Highlighted
Level 14

1098-T Box showing up as 1040 Box 1 income...why?

suggest going back and checking all of the inputs......  if Box 5 exceeds Box 1 then the net should show up as income on Line 1 of form 1040.  if it's the other way around it shouldn't, 

 

are you saying that BOX 5 is the amount that is showing up on Line 1 / Form 1040????? 

Highlighted
Expert Alumni

1098-T Box showing up as 1040 Box 1 income...why?

It depends.

 

Scholarships are taxable if used for the following items

  • Room & board 
  • Travel & incidental expenses 
  • Any fees, books & supplies not required for classes 

 Scholarships are not taxable if used at an eligible school for a degree if: 

  • Tuition & fees 
  • Fees, books, supplies needed for classes 
  • Scholarship or fellowship for services from: 
    • National Health Services Corps Scholarship Program 
    • Armed Forces Health Professions Scholarship & Financial Assistance program 

You can check your input and make any allocations by doing the following:

 

Go to the Federal interview section. 

  1. Select "Deductions & Credits" 
  2. Select "Expenses and Scholarships (Form 1098-T)" and click start/edit 
  3. When you see Your Education Expenses Summary, select Edit to the right of your name.  You will see the following screen: 

Input

 

Select Edit to the right of Scholarships/Grants (for all schools).

 

You will be able to allocate the amount of the scholarships used or not used for room and board as you go through the screens.  It should look similar to the picture below.

 

Scholarship income

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Highlighted
Level 14

1098-T Box showing up as 1040 Box 1 income...why?

@JotikaT2 - i appreciate the time you took to provide your detailed post... however, under the assumption that the school completed the 1098T correctly, 

 

This is what should already be in Box 1: 

  • Tuition & fees 
  • Fees, books, supplies needed for classes 
  • Scholarship or fellowship for services from: 
    • National Health Services Corps Scholarship Program 
    • Armed Forces Health Professions Scholarship & Financial Assistance program 

This is what should already be in Box 5:

  • scholarships 

 

These items are already not represented in either Box 1 or box 5 (and shouldn't be represented)

  • Room & board 
  • Travel & incidental expenses 
  • Any fees, books & supplies not required for classes 

 

As long as @Sagnest punched in the 1098T correctly, the error should be elsewhere.  Did you by chance indicate that your child CAN BE your dependent? that could be the source of the error.

 

Highlighted
Level 15

1098-T Box showing up as 1040 Box 1 income...why?

 If Box 1 (tuition ) exceeded Box 5 (scholarship), you are correct there should not be SCH income on line 1 of form 1040.  There is an entry error, somewhere.  She may even be able to claim a tuition credit.

 

But, why is your daughter not your dependent? 

Privacy Settings