1098-T form - Grad school

[afouf27]

Hi, 
I worked in grad school and tuition remission was part of my benefits, my school (employer) paid for my tuition.  My tuition was added to my paycheck and taxed.  

When I received my 1098-T, the student accounts listed in Box# 1 the payments received from all sources, including student/tech fees which were not covered by tuition remission.  

Nevertheless, in Box# 5, they listed my tuition remission amount as scholarship/grants, which didnot make any sense to me, because my tuition remission was already added to my paycheck and treated as earnings.

The school insist that they have to list those tuition remission as scholarship, and claim this is how the IRS requires them.  

I read the IRS instructions for 1098-T for 2024, and it clearly states that student tuition paid by a third party, is an exception and donot have to file 1098-T.

Am I right to request the student accounts to correct the form?

If yes, what can I do to make sure they issue me the correct form, please?

Thanks!

[Hal_Al]

Q. Am I right to request the student accounts to correct the form?

A.  No.  You are (probably) right that they are wrong, but don't waste you effort trying to get them correct it.  We see it all the time in this forum, the schools will not correct them.

Just make the corrections when you enter the info in TurboTax. 

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 the 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 2023 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.

[Hal_Al]

You said "I worked in grad school and tuition remission was part of my benefits, my school (employer) paid for my tuition.  My tuition was added to my paycheck and taxed".

What you describe is highly unusual.  Tuition remission is usually not reported anywhere and not added to your W-2.  It is not subject to the  limit ($5250 tax free) that non university employer tuition assistance is.   

[afouf27]

This is how the grad school I worked at handled the tuition remission and it was very hard to track when they taxed and why...etc.  and my tuition remission amounts are listed on my W-2 for (under Other).

[Hal_Al]

There is no "other" box/line on the W-2.  Sometimes there will be a memo in box 14 or one of the box 12 lines. That is usually just informational and does not affect your tax return. The real question is was that amount also included (on top of your wages)  in the box 1 amount? Usually not.  if it was, then the tuition was paid with your money and you can claim the tuition credit. 

[afouf27]

As you mentioned it is Box#14, on my W-2 and I have no idea what they included there, because the numbers do not add up, since it only lists have tuition remission and they never paid any tuition remission for this past year.  My previous job W-2 only lists my income from work, but on my paycheck they used to divide tuition remission amounts equally over the semester and those amounts were taxed and deducted from my pay check. 

It is confusing and the fact they are not communicating makes it worse! 

[AmyC]

I am reading that you got a w2 with a box 14 amount for tuition that you did not receive. You need to contact payroll and find out what is in boxes 1 and 14. Perhaps box 14 is for something else or a payment was made that you forgot. If not, a corrected w2 should be issued.

If you can't get it corrected, file your taxes with the correct information and make thorough notes of what you did to get a correct form and file your taxes correctly. The IRS might ask in a few years and things get foggy over time.

[afouf27]

It is very confusing and I will ask them to explain the numbers on my W-2.