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debbielfoster
New Member

Form 1098-T shows scholarship but I had to pay back to previous employer. My University will not correct 1098T, even with providing proof of pmt. How do I enter this?

Box 5 on 1098-T has amount for scholarship (tuition paid by employer) but I left employer and had to pay it back to former employer in 2016.  Can I omit the amount in Box 5 or how do I account for the full tuition I had to pay out of pocket to get my full Lifetime Learning Credit?  The University will not correct the Form 1098-T, even though my former employer provided proof that I paid them back in full.

1 Best answer

Accepted Solutions
KrisD
Intuit Alumni

Form 1098-T shows scholarship but I had to pay back to previous employer. My University will not correct 1098T, even with providing proof of pmt. How do I enter this?

Make sure you have good records to prove your expenses and payments.

Keep a copy with your tax records.

Since you paid the employer back, you can take credit for that payment.

The IRS gets a copy of the 1098-T so enter it into the program as the school reported it.

After entering the 1098-T you can continue to where the program asks if you received any other tax-free assistance, say "Yes".

If you are going back in, you need to click "Scholarship/Grants (for all schools)" Edit

Enter, under employee assistance, the amount you paid back as a negative number.

This will negate the scholarship in Box 5.

The scholarship will still show in box 5, but the amount will be subtracted when computing your educational credit.

(PLEASE SEE SCREEN SHOTS BELOW)

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1 Reply
KrisD
Intuit Alumni

Form 1098-T shows scholarship but I had to pay back to previous employer. My University will not correct 1098T, even with providing proof of pmt. How do I enter this?

Make sure you have good records to prove your expenses and payments.

Keep a copy with your tax records.

Since you paid the employer back, you can take credit for that payment.

The IRS gets a copy of the 1098-T so enter it into the program as the school reported it.

After entering the 1098-T you can continue to where the program asks if you received any other tax-free assistance, say "Yes".

If you are going back in, you need to click "Scholarship/Grants (for all schools)" Edit

Enter, under employee assistance, the amount you paid back as a negative number.

This will negate the scholarship in Box 5.

The scholarship will still show in box 5, but the amount will be subtracted when computing your educational credit.

(PLEASE SEE SCREEN SHOTS BELOW)

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