I could use some help with my 1098-T, specifically box 5. Box 1 shows $6,412 and box 5 shows $270 due to a grant. My employer contributed a total of $6,142. $5,250 were tax free (the school directly billed them) and the remaining $892 was reported on my W2. I checked both prompts (shown below) and when asked I enter $5250 as the tax free amount and $892 as the W2 portion. However, I get an error when the system is checking my tax return stating $5250 is greater than box 5.
How would I go about clarifying/adding in the amount my employer covered (tax free) as well as the amount reported on my W2?
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Do not check the prompt that the aid was already on your W-2. When asked to enter the amount of tax free assistance, enter only the $5250. Do not enter the $892 anywhere.
Since you were taxed on that $892, it's not really employer assistance. It's you befog tax money and you may use it to claim the tuition credit.
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