How do I make my 1098-T tax free, when it was used only for tuition?

regina_gw · ‎April 17, 2023

My 1098-T is being shown as taxable income, when it should be tax-free since it was only used for tuition. How do I do that?

DoninGA · ‎April 17, 2023

The scholarship amount is greater than the tuition amount then the difference is taxable income.

Hal_Al · ‎April 17, 2023

If it (the scholarship) was only used for tuition, and your and your parents ate not claiming a tuition credit, then just don't enter the 1098-T in TurboTax (TT).

If it was only used for tuition, why does the school show more in box 5 than in box 1?

One possibility is that TT has assumed that your parents are claiming the tuition credit on their return.

You will eventually reach a screen "amount used to claim the education credit". TT usually prepopulates that with $4000. You should change it to $0, if your parents are not claiming the credit.