1098-T Not reflecting tuition waiver

[mia12]

I graduated in May 2020, but before that had been receiving a stipend (covered through the W-2) and a tuition waiver to attend. My 1098-T lists ONLY a $37 amount in Box 1 and nothing in Box 5, despite the fact that I had a scholarship directly cover the cost of my tuition. Why would this be the case? And does this mean that the full tuition amount (around $8,000) is taxable?

Thank you!

[mia12]

To clarify, I was a graduate student. I think that may make a difference in how the taxes will be assessed.

[ThomasM125 · Accepted solution]

If your scholarship income was used to pay for your tuition, then it would not be taxable, assuming your curriculum qualifies as allowable education expenses, which is typical.

Normally, the tuition would be reported in box 1 and the scholarship income in box 5. I don't know why it wasn't reported, but it shouldn't have anything to do with you being a graduate student.

You can report the income and scholarship when you do your form 1098-T entry in TurboTax, but if the income is not taxable and you don't get a credit for the tuition, it won't show on your tax return.

[mia12]

Thank you for your help! I did get taxable income through the position, but I got a separate W-2 for that.

How should I go about reporting this on my tax forms? Should I check the box under Box 1 that says "This is not what I paid to this school?" Or should I forgo entering the scholarship under the separate "Scholarships/Grants" area, as the 1098-T would have already covered that?

[ReneeM7122]

You do need to enter the 1098-T exactly as it appears, because the IRS will check to ensure that the information matches.  To enter your scholarship income in TurboTax, in your return, go to Federal Taxes, Deductions & Credits, Education and the program will walk you through the information about your scholarship income, to determine what's taxable.