1098-T incorrect? How should it be entered into TT

[mtls1]

Question:
I believe 1098-T is incorrect and that box 1 should include WRGP tuition waiver, or that box 5 should not include WRGP tuition waiver, do you agree?
What would be my specific inputs into TT in regards to 1098-T, scholarships and educational expenses?

Background:
- 1st semester fall 2024 term for out of state graduate audiology school

- Total charges on the schools account summary for the term = $18,237.25 which consisted of books, required fees and tuition. I believe all of these are qualified educational expenses, No R&B. 

Total payments on the account summary = $18,237.25. Total charges were paid by:
- $7,417.25 (parents payment)
- $1,265 fellowship scholarship
- $9,555 WICHE/WRGP (tuition reduction/waiver)

1098T box 1=$8,682.25 (parent payment (+) fellowship scholarship)
1099T box 5=$10,820 (fellowship scholarship (+) WICHE/WRGP tuition reduction/waiver)

Thank you for your insight.

[AmyC · Accepted solution]

When you enter the 1098-T, there is a box to select, what if this is not what I paid in tuition. Select it and enter the full $18,237. Keep your records with your tax return.

[Hal_Al · Accepted solution]

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 2024 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.