1098T not recognizing dependent as student, showing parent as student

Here's how to edit the 1098-T in TurboTax:

From Deductions & Credits

Expenses and Scholarships (form 1098-T) hit Update

From the page that says Now Let's Gather The Additional Education Expenses

Hit Continue. You will need to continue through several screens until you get to the screen that says Your Education Expenses Summary click Edit

At Here's Your Education Summary you can Edit, Delete or Add New School.

If you are listed here as the Student select delete.

On the next screen it will ask about deleting you as a student. Select yes and then select Add New Student.

This did not work. I deleted the 1098T but when I try to add new student it still shows me (the parent) automatically, it doesn't give me an option to choose my son, the dependent as the student. Plus there is no where to enter the name on the 1098T. It just defaults to me but 1098T is in his name. 

Is your son showing up as a dependent? Please make sure:

1. On the Do You Have Children or support someone? screen, answer Yes.
2. On the Who Do You Support? screen, answer one of the first two options.
3. On the Tell Us About Your Child screen, verify the birth date and citizenship status.
4. On the How many months did XXX live with you in 2019 screen, select the whole year or the right number of months lived with you. 
5. At the How many of those months were in the U.S.? box, select the whole year or the right number of months lived with you. 
6. On the We know XXX is a baby/child, but we have to ask: Did she pay for most of her living expenses? answer No if she did not. 
7. Continue with the onscreen questions.
8. Go to the end of the dependent entry section of TurboTax. 

Once you have entered or re-entered your child as a dependent, then the program should prompt you to select him as a recipient of the Form 1098-T

Yes he is. I rechecked all these questions and they were already correct. 

Should I try to delete and re add him as a dependent? He's been on my return for years  (using TurboTax) and it just auto fills everything. I just check it each year to make sure everything pre filled is correct. 

I deleted him and re added him as my dependent. Tried again to add the 1098T & it shows: 

Type in the info from Tracy's 1098-T, NO option to choose my son. 

After you entered Tracy's dependent information in MY INFO, make sure Turbo Tax indicates that he is an eligible dependent. Go through the dependent information, including Social Security number information and then at the end of that interview, turbo tax will let you know he is an eligible dependent. If it is determined he is a eligible dependent, then he is an eligible dependent. Also when you begin entering the information for the 1098T, see if there is an option to +add a student.

Dave I have verified that he is an eligible dependent (TurboTax program told me he is). Also when trying to add the 1098T, there is a "add student" but once I click it, it asks: Did you get a 1098-T for the year 2019? and reply "yes" it asks to upload, I skip that section, it keep rejecting it,  and then next screen says Type in the info from Tracy's 1098-T. I can't get it to recognize my dependent is the student! It is assuming I am the student. So frustrating!! 

I'm having exactly the same problem!  I've gone through all the steps listed above and STILL cannot select my son as the student!

 This may be redundent, but it is an attempt to tie everything together.

• First, delete the 1098-T screen, then delete your dependent.

To Delete a Form

Open your return in TurboTax. 

• In the left side bar, select Tax Tools> Tools.
• In the pop-up window Tool Center, choose Delete a form.
• Select Delete next to the form/schedule/worksheet and follow the onscreen instructions

I have done this next step numerous times (after not finding the dependent listed) and it always works. Since I practice different scenarios, I clear and start over many times on this practice return. The dependent will be in the drop down box along with both taxpayers.

In the drop down box in the Education Credit section, I can see the dependent, along with both taxpayers.

You can't claim education expenses for a person who isn't your dependent. If you don't see one of your dependents listed here, we recommend you visit My Info and enter them as your dependent, then their name will show up here and we'll be able to work on their education expenses.

I'm having the exact same problem and none of the solutions have worked. Tracy, have you found a solution that worked for you?

Try this and see if this helps.  It is something that has worked for other users so hoping it works for you as well!!!

I understand some steps may be repetitive but it should fix whatever is going on and let you proceed with your return.

1. Go to the input section for the 1098-T.
2. You will probably skip to the section titled books and supplies.  Just continue as you probably will not be able to enter any information here.  Just continue through the screen.
3. Do Not enter any scholarship amounts when it asks if the scholarship is listed in Box 5 of the 1098-T.  We want to avoid potentially doubling up any input already made.  Hit continue instead.
4. Continue through all the screens.
5. You may get a message which says you can't maximize because there are no expenses.  Just select continue until it takes you back to the Wages & Income screen.
6. Now, Go back into the "Education Credit" section.  
7. Select "Edit" next to the student.
8. It will ask you if you had an education credit and show you the summary.
9. Select "Edit" to the right of Tuition.
10. It will ask you if you received a 1098-T.  Select Yes and continue.
11. The next page should show you your input on the 1098-T.
12. Continue through the screens

This should eventually take you to the screen showing which deduction you can take.  

After you pass this screen, run a review.  The issue should resolve itself allowing you to proceed with your return. 

None of the suggestions here are working for me. Please fix this bug in the website. I'll be using another tax service since I'm so frustrated.

My dependent IS confirmed my dependent, and yet I don't get any option to choose him as the student on the 1098 T form - the site keeps auto-selecting me.

Edit: After using a competitor site, I discovered that my income is too high to qualify for tuition deductions. The limit is $90,000 for single filers and $180,000 for joint filers. This might be the reason the 1098-T form isn't working for many people - TurboTax just isn't handling the error appropriately.

More info on how to qualify for tuition credit: https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers 

You should still be able to enter information from Form 1098-T even though you're income exceeds the limit for the tax break.  You would just see a screen at the end of the interview that You can't claim an education tax break.

I am unable to duplicate your situation.  Are you using the TurboTax Online or CD/Download version?

@kulakowskin

Yes, please have someone correctly program the TT Education Expenses section. There are quite a few bugs. It was better in 2015, or 2019 when it was simpler, and we put in the amount of scholarship,  our payments, what was taxable (income since not tuition or allowed higher education expenses) and what was not. The interview questions seem to lead to incorrect input, as well.  Some have reported TT, upon calling in for help, has told them to override, or to delete an amount on the appropriate form. That sounds very worrisome. I am about to put my current data for my student in an earlier version of TT which seemed to have worked better in previous years. Question: Can I input data for my 3rd child using the 2019 TT to see how the Deductions and Credits are calculated there? then, I can use the worksheets and override for 2020 TT Education worksheets?

Also, I note that in 2019 a TT employee tax expert said that Box #1 should include scholarship information as well as payments made by the student/parent. Is that the case? If the amount we also paid the institution is not added to the scholarship in Box 1,  is this the correct place to report it by adding it to Box 1? 

Box 1 includes all of the education expenses paid for the year. So, it could have been parents, scholarships, anything, anyone.

Box 1 is what the school claims was paid to them for education expenses. They don't care how they got paid in box 1. In box 5, they put the scholarships that they know about.

You want to report the 1098T as it looks. The program will ask if you paid the college more, other expenses and so on. See Where do I enter Form 1098-T? There is lots of great information in Education.

@connexcindy2016

This is helpful.  Thank you @AmyC .  (Also, @tgraeber1 , the link with helps for education expenses looks great! But it has an error (404). Can you reenter it?)  Meanwhile,  I cannot duplicate how the TT interview is populating the TT worksheets and tax forms in a comparable way to 2019. How will it determine that the amount I paid (added in Box 1) should be used for deductible tuition higher expenses?  Where and when will I be asked for my portion of the payment? I have been through the interview about 6 times now with various problems. Which line/box on the worksheet will this be placed?

Could you please describe where the questions of the interview put the information on the worksheet? For example,

1. Where is Box 1 placed in the worksheet/tax forms? Where does Box 5 get put on the worksheets/tax forms?

2. Where will the parents' contribution be a)asked for and b)placed in the worksheet/TT tax forms as a tuition allowed deduction?

3. Where will the other expenses such as Room and Board but not deductible be a)asked for and b)placed in the worksheet/TT tax forms as non a tuition expense/higher ed expense?

4. Where will there be a decision on how much of the income of that which is not deductible should go to the student or parent's taxes a)asked for or explained and b)placed in the worksheet/TT tax forms.  

5. Where is the calculation made about which of the credits or deductions should be given? Which lines does it compare to make the maximized choice in the credits or deduction?

6. Where in the worksheet/tax form will it determine if we do not get a credit or deduction?

TT is not calculating properly, it appears. Or, I do not understand the interview. This can be a problem for some parents who also have incorrect information from the universities who have been told to enter the 1098-t differently as of 2018. I am attempting to realign the interview with the worksheets so I do not need to "write over" any incorrect information without a good script on why I was told to.

Here are more links and answers! I have tons of links but try not to overwhelm. The Form 8863 is where it all goes. Maybe seeing how it goes together will help. The education link worked when I clicked on it from the messages. Maybe it was a temporary error?

Questions 1, 2, & 3 All go to worksheets running behind the scenes in the program. You are overthinking this. Think basic. College education expenses of $10,000. Scholarships of $5,000. Who is left to pay the difference, you! You would get credit for the difference.

MOST important step and link for now     Question 4. This answer will be derived as you ***** look at another of my answers for help.*****  since, the IRS lets you move the numbers around some to get you the most benefit. You will be able to see if there is anything left taxable to your student. For example: Child gets a $70,000 scholarship and has $25,000 in education expenses. The child will claim the difference as income- on their personal tax return. Yes, it happens. Usually, the numbers require a mental workout instead. 

Question 5 & 6. The Tuition Summary worksheet marks the qualified expenses and checks off which credits you are entitled to receive. Then, the program has an optimize button which will compare the deduction and the credit. The program will tell you which is best and why.

Comment: You mentioned a change. Yes, the 1098T used to be informational. Now, it is an official tax document.

Qualified Expenses

Qualified College

Available Education Credits

IRS Q & A about education credits

Tax Benefits for Education: Information Center

About Form 8863, Education Credits

Follow these steps:

1. Did you pay for books or materials to attend school? Yes
2. Enter related amounts, tuition may say $0
3. Continue
4. Scholarships and Financial Aid, continue
5. Did you get a scholarship? yes and fill in boxes or no
6. Continue
7. screen asking Four Years of College Credit Before 2019? answer yes or no
8. Continue
9. Is this First Year of College? answer yes or no 
10. Continue
11. Ever Receive American Opportunity or Hope Credit? answer yes or no
12. Continue
13. Felony drug conviction? yes or no
14. Continue
15. Education Expenses Summary, EDIT

@connexcindy2016  Good luck!

Thanks @AmyC . I was referring to @tgraeber1  's url for irs documents. 

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers%C2%A0 

Were you able to get this to work? 

Here is the crux of my main confusion now before I can move along. Can the Room and Board be put (still, as in previous years from what I read) onto the student's taxes? Are they requiring all of the monies to be claimed on the parents taxes? If there is not a W2 or 1099 would this still be the case?

Ah, no that link is not working. But, the IRS Tax Benefits for Education: Information Center I gave, includes the updated version.

If the student has scholarship money left after tuition and other required expenses, then the excess goes on the student return as SCH income. The student has the first $12,400 tax free so this is not a hardship for the student in nominal amounts.

Parents must claim any 529 money issued in their name and not used on qualified education. Which I why I sent the link to my other post, good for moving money around legally and optimally.

The only forms would be scholarships, 1098T, or 1099Q.

The scholarships can take many forms, including W2. So, you deal with the hand you are given. Those would be in the student's name, not yours.

@connexcindy2016

Thanks @AmyC ....

I understand the theory behind the excellent link you included in the answer - suggesting "Option 2". However - I do not know how to do this! TT has become further from the actual calculations in the previous 5 years. But, I do not know where I am to try these numbers. Is this the question where it asks if we have a W2 or 1099 regarding income claimed already (on our daughter's taxes I assume?) Please tell me how...

@connexcindy2016  You are not going to like this answer. The IRS is putting it all on you.

Think of it this way, suppose the IRS decides to audit your return for education expenses.

You need to be able to pull out a spreadsheet or a piece of paper, something showing how you put it all together and how you delegated income and expenses.

I won't give examples as you have seen some of mine already.

All on you to determine what is best for your family. The IRS is being generous here but it can feel like swimming through mud. Start it out, play with examples, and at some point, like any good math problem, a light may go off and the best way for your family will come out of it. Good luck!

Has anyone figured out the solution to this completely irritating problem. I have also tried EVERYTHING in this thread and nothing works. My "PARENT" name still populates the 1098T section. This will be a deal breaker. We have 7 more years of college to go thru!