What is a 1098-T? If I didn't report this will it decrease my refund?

[SeanE1 · Accepted solution]

A 1098-T is a statement from a college that someone attended. It should show the amount of tuition billed for qualified educational expenses and the amount of any scholarship/grants that were received.  If the scholarship/grant amount is larger than the tuition and other qualified education amount billed, the result is more taxes because the IRS views the excess as taxable income.  If the reverse is true, where the amounts billed are greater than the scholarship/grants amount, the difference could result in an education credit which would reduce taxes.

To include the 1098-T into your Turbotax program, please open your return and select the Federal Taxes tab at the top of your screen.  From there, select Deductions and Credits and scroll down to the Expenses and Scholarships (Form 1098-T), and input the information into your program.