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Baltun3
Level 1

1098-t

I received 1098-t form from my university. I don’t receive any scholarship or financial aid and no loans either. I don’t need any money from my taxes.  If I don’t include my 1098 -t form Am i going to get penalty?   Do they (irs) will find out about that form???? 

1 Best answer

Accepted Solutions
AlanT222
Expert Alumni

1098-t

You are not required to file your 1098-T if you are not going to claim any education credits AND did not have taxable scholarship income (scholarships that exceeded the tuition paid).  However, keep a copy of your 1098-T with your tax records for at least three years.

 

You may want to reconsider filing your 1098-T.

 

Education tax credits can help you with higher education costs by reducing the amount of tax you owe. There are two credits available, the American Opportunity Tax Credit and the Lifetime Learning Credit. We check both of them for you.

American Opportunity Tax Credit (AOTC)

You can use this credit for the first four years of college when working towards a degree.

  • The maximum credit is $2,500 per eligible student.
  • Must be enrolled at least half time for at least one semester during the tax year.
  • Up to $1,000 can be refunded to you.

Lifetime Learning Credit

There is no limit on the number of years you can use this credit for undergraduate, graduate, and professional degree courses, including ones to improve job skills.

  • The maximum credit is $2,000 per tax return.
  • Can be used when you're only taking one class.
  • You don't need to be working towards a degree.
  • None of the credit is refundable.
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5 Replies
AlanT222
Expert Alumni

1098-t

You are not required to file your 1098-T if you are not going to claim any education credits AND did not have taxable scholarship income (scholarships that exceeded the tuition paid).  However, keep a copy of your 1098-T with your tax records for at least three years.

 

You may want to reconsider filing your 1098-T.

 

Education tax credits can help you with higher education costs by reducing the amount of tax you owe. There are two credits available, the American Opportunity Tax Credit and the Lifetime Learning Credit. We check both of them for you.

American Opportunity Tax Credit (AOTC)

You can use this credit for the first four years of college when working towards a degree.

  • The maximum credit is $2,500 per eligible student.
  • Must be enrolled at least half time for at least one semester during the tax year.
  • Up to $1,000 can be refunded to you.

Lifetime Learning Credit

There is no limit on the number of years you can use this credit for undergraduate, graduate, and professional degree courses, including ones to improve job skills.

  • The maximum credit is $2,000 per tax return.
  • Can be used when you're only taking one class.
  • You don't need to be working towards a degree.
  • None of the credit is refundable.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Hal_Al
Level 15

1098-t

What does "I don’t need any money from my taxes" mean? That is what is situation?  if you are claimed as a dependent, by your parents, they can claim the tuition credit based on your expenses, whether you paid them or they did.

 

If you have enough income to be self supporting, the credit will usually held reduce your tax liability.

 

If you are a student, over age 23, and are not claimed as a dependent by someone else (e.g. your parent) you may be eligible for the up to $1000 refundable American Opportunity (tuition) Credit.  You must be at least a half time undergraduate student. There's even a loop hole available to claim the credit, if you are on scholarship.

 

That said, the other reply is correct. The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. 

 

 

 

 

Kat1816
New Member

1098-t

I have a similar question.  But can't figure out how to add it to this forum.  When I had finished entering info for my taxes, there appeared an "error" showing a 1098-T for me (my first name), with some problem.  I am not a student and was not claiming education expenses for anyone.  However, I did contribute to 529 plan for a granddaughter who is using these funds for her college expenses.  If that "error" 1098-T was meant to be for her somehow--I can't find out how to clear the error.  She did receive a 1099-Q and filed all necessary with  her parents' 2020 Taxes.  (Note:  I did not try to claim any of the money I put into her 529 account.)

Kat1816
New Member

1098-t

Oops -- re my reply (which was really a question) -- My granddaughter did receive a 1098-T.

ColeenD3
Expert Alumni

1098-t

If the parents are claiming the dependency and education expenses, then they need to enter the 1098-T on their return. Anyone can contribute to a 529 plan account and name anyone as a beneficiary. Parents, grandparents, aunts, uncles, stepparents, spouses, and friends are all allowed to contribute on behalf of a beneficiary. However, you do not enter anything on your own return. It is not deductible to you.

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