1098-T Question

[amcaliworker]

Hello! I would really appreciate some help. I am going to simplify the numbers here to make the situation easier to understand. Box 1 says $4500 and box 5 says $7000. My issue is that I received a $3000 emergency housing assistance grant from the school and they included this in box 5 (I was expecting it to say $4000 because I was advised that the IRS does not consider emergency grants taxable). I would like to avoid paying tax on the grant or the difference between line 5 & 1 because technically I still paid $500 in tuition + another $500 for books.

I am filing my taxes using TurboTax and I’m not sure how I should complete the education expenses section. Could someone please let me know what numbers I need to include and where?

Thank you!

[Hal_Al]

You'll probably have to ask the school why they classified your $3000 as room& board (lodging) scholarship rather than the emergency housing assistance grant you think it should be,

That said, 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. 

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.

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