Do I have to include form 1098-T?

[williamcoca95]

Am I legally obligated to include form 1098-T? The IRS website talks about the Eligible Education Institution only.

[Hal_Al]

Q. Do I have to include form 1098-T?

A. No. 

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. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

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 2023 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.

Q. The IRS website talks about the Eligible Education Institution only?

A. If you got a 1098-T that's proof that your school is an eligible institution for IRS educational tax benefits.  Regardless of the institution's status, scholarships that exceed qualified expenses are taxable.  Room & board are not qualified expenses. 

[williamcoca95]

So, in my case, I believe that there is a scholarship income included in the 1098-T. My Wages & Income TurboTax page does not include anything related to this income - I believe this is the tab you referred to as "my own financial records."

Does that change your answer @Hal_Al ? Below:

"Q. Do I have to include form 1098-T?

A. No. "

There might be some timing issues with the 1098-T I received, so I will look into that to see if I can apply your suggestions.

[Hal_Al · Accepted solution]

Q. Does that change your answer?: Q. Do I have to include form 1098-T? A. No. 

A. Yes, sort of. 

As you noticed, there is no place to enter taxable scholarship, in the "wages and income" section of TurboTax (TT). Instead, you enter it in the "Educational expenses and scholarships" section of Deductions and Credits. 

While technically, there is still no requirement to enter the 1098-T, you must enter the taxable scholarship in that section.  Entering the 1098-T usually makes that go easier.  TT will treat the difference between box 5 and box 1 as taxable (if box 5 is more), unless you enter additional expenses like books and a computer.  In the Educational expenses and scholarships section, you will be allowed to enter scholarships not shown on the 1098-T.  So, if you know the numbers, you don't have to wait on the 1098-T.