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acballer
New Member

Have 2 W2s & a 1098-T from athletic scholarship. TT insists I file the Lifetime Learning credit even tho I've never paid to attend school. Repeatedly deleted 8863.

8863 & 8863 p2 have both been deleted multiple times.
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4 Replies

Have 2 W2s & a 1098-T from athletic scholarship. TT insists I file the Lifetime Learning credit even tho I've never paid to attend school. Repeatedly deleted 8863.

Any scholarship income not used for qualified education expenses is taxable income. That is why you need to complete that form. 

Vanessa A
Expert Alumni

Have 2 W2s & a 1098-T from athletic scholarship. TT insists I file the Lifetime Learning credit even tho I've never paid to attend school. Repeatedly deleted 8863.

If your tuition was completely covered by the scholarship, you can simply not enter the 1098-T.  This is not a form that is required to be entered.  It is a form that is entered when your scholarship income is greater than your tuition amount or when you are trying to claim the education credits. 

 

If your scholarships were not greater than your tuition amount and you do not want to claim any education credit, you do not have to enter the 1098-T.  You can delete it and not enter it. 

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Hal_Al
Level 15

Have 2 W2s & a 1098-T from athletic scholarship. TT insists I file the Lifetime Learning credit even tho I've never paid to attend school. Repeatedly deleted 8863.

You should reach a screen "amount used to claim the education credit". If TT has prepopulated that with $4000 or $10,000, you should  change it to 0, unless you parents are claiming the education credit, on their return (if you are their dependent).  Then it should be $4000. 

 

To get back to that screen, at the education summary screen, scroll down to education information and click edit. You'll have to go thru several screens to get there.

 

If you are on a full ride scholarship, you do need to enter the 1098-T to report the taxable portion of the scholarship. 

Scholarships that paid for non qualified expenses are taxable. Tuition, fees, books and computers are qualified expenses.  If box 5 of your 1098-T is more than box 1, TurboTax will usually treat the difference as taxable scholarship income unless you tell it differently.  Room & board are not qualified expenses for tax free scholarship. 

 

 

acballer
New Member

Have 2 W2s & a 1098-T from athletic scholarship. TT insists I file the Lifetime Learning credit even tho I've never paid to attend school. Repeatedly deleted 8863.

Thank you! Lines 1 & 5 are equal, so I guess that's the problem.

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