If you have not filed, you can simply return to the Form 1098-T replica screen to edit the information. In TurboTax online, here are the steps:
I followed your instructions, however, there is no option to select whether or not the previous year's (2018) 1098t had box 7 checked. My previous year's (2018) 1098t had box 7 checked, but the line on form 8863 is checked no. I have even started a fresh return just to get the same result.
To get to that question:
When you enter the school's address under the address is a check box
Attended this same school in 2018
you will then get to the page that says
Did you get a 1098-T from xx School in 2018
Answer yes opens
Was there an amount in Box 2?
Answer yes again
Was Box 7 checked?
I am having the same issue in the PC/Download edition.
The Box 2/Box 7 selection did not help. Plus, my box 2 was empty while box 7 wasn't, so it does not even reflect the true facts.
I also tried to override it the Forms but got a warning message that it will screw up my return.
Is this a glitch that could be fixed soon?
Thank you!
I rolled the dice and submitted as is. If you compare the 2019 form 8863 to that of 2018, you’ll notice the reference to box 2 was omitted. So, either it is a mistake on the form itself or a glitch with the TurboTax software.
The program does ask about Box 7 being checked, but only if you select that part of your scholarship is for a different year. That is the only time it comes into play and if that is the case, there is additional information the software needs, so it is only asked for later if needed.
If the software didn't need it, it's not asked for.
You say it only asks if it is needed. Since I don't have scholarships to enter, it doesn't ask me if Box 7 is checked. The problem is that if it doesn't ask, then it assumes the answer is "no", which is then printed on Form 8863 line 22(3). Therefore, the program is requiring that I submit a tax return with an incorrect answer. If I over-ride, it won't let me submit. This is definitely a glitch.
The same thing seems to be happening with the 2020 version of software.
Form 8863 will check "No" for Part III, line 22, question 3. I can't get that to answer "Yes", even after going through the above steps.
The "You attended this same school in 2019" box when entering the 1098-T information does not work.
When I uncheck that box and continue, then check the box and continue, it asks if I received a Form 1098-T in 2019, but the two questions are:
"Let us know if you received a Form 1098-T from XXXX in 2019." Yes/No
"Was there an amount in Box 2" Yes/No ("No" in this case)
Only if this question is answered "Yes", does it ask about box 7.
It never asks for the amount in Box 2, so I'm not sure how Box 2 (which is unlabeled on 1098T) affects taxes.
So, if you lie about "Box 2" (the value is never asked for), it will let you check Box 7.
Definitely a bug.
Yes, Box 7 was checked in 2018 and 2019 but not in 2020
The question on the 2020 Form 8863 asks if the box on the 2019 1098T return was checked. I found the place to answer about the 2020 Form 1098T but not the 2019. Help
On the 1098-T questionnaire page titled "Type in the info from your 1098-T", make sure you've checked the box to the left of "xxxx attended this same school in 2019" (if the student did, in fact, attend the same school). Then, when you proceed to the next screen it will then ask you about 2019. If the student did not attend the same school in 2019 and it is not their first year, then the system will be expecting an additional 1098-T. If it is their first year, however, then there would be no 2019 question. Therefore, I am assuming that the student did attend the same school in 2019 and you might have missed checking that box.
After trying several methods, I finally had to break down and call the help desk. This is what I was told to do and it worked!
1). Go into Forms mode by clicking the Forms icon in the upper right hand corner of the TurboTax screen. You should see a list of all your forms on the left side of the screen now.
2). Click on the 1098-T Wks form shown in the list. Now you should see your Tuition Statement on the right side of the screen.
3). Near the top of the statement, you should see a section with the heading "1098-T Information (Required)." Under that section, see item B, which says "A Form 1098-T was received from this institution for 2019 with Box 2 filled in and Box 7 checked Yes No"
You can mark the Yes box by clicking it.
Making this modification on the Tuition Statement form automatically modifies the 8863 form, part 3, line 22, question 3.
You can verify that the 8863 form was updated by locating it in the forms list on the left and clicking it. Make sure you click the one that's labelled Form 8863 p2 (which is page 2 of the form).
To get back to regular mode, click the Step-by-Step icon in the upper right hand corner of the screen.
Yes, that is correct for taxpayers using TurboTax CD/Download.
For taxpayers using TurboTax Online, then follow these steps:
For more information, see:
The Lowdown on Education Tax Breaks - TurboTax Tax Tips & Videos
I am also having this issue. I attended the same school in 2020. the question asked: "Did the student receive Form 1098-T from this institution for 2020 with box 7 checked?"
The correct answer is no. The 1098-T I received both last year and this year have NOT have box 7 checked. I also did not indicate this when completing this year's form. But yet on my return this year, it marked the answer "Yes."
Will this change my return amount? Will the IRS audit? Or not a big deal? Thank you.
Form 8863 line 22 (3) reports if box 7 was checked on your 2020 1098-T.
The answer should show as "No", UNLESS the 2020 Form 1098-T had a number in Box 2 which is doubtful. Box 2 has not been authorized for use since 2016, but on occasion a school still (incorrectly) uses it.
The only screen that asks about the 2020 1098-T box 7 first asks about the 2020 1098-T Box 2.
You should PROBABLY be answering "Yes" to "Did you get a 1098-T from this school last year" and PROBABLY "No" to was there an amount in Box 2, in which case the program does not ask about Box 7.
IF your 2020 1098-T has an amount in Box 2, you would need to answer the question about Box 7. Please check the 2020 1098-T to verify there is no entry in Box 2. If there is, then you need to continue and answer about Box 7.
The only time the program asks about Box 7 for the 2021 Form 1098-T is on the 1098-T entry screen.
Please revisit the entry screen for the 1098-T and edit if necessary. If the 1098-T was uploaded, it may need to be manually entered.
The idea behind the questioning is this-
Years ago, schools reported what was BILLED in a calendar year (Box 2) but the IRS only cares about what was PAID (Box 1). IF a school uses Box 2 to report what was BILLED, Box 7 comes into play BECAUSE you can include the expenses of the first three months of the following year IF they were paid ahead. That is what Box 7 indicates.
So for 2021, you can claim expenses PAID for 2021 and/or the first three months of 2022. (of course next year you can't again use those same expenses)
If the school correctly uses Box 1, Box 2 is not needed nor used.
Since you are using TurboTax Desktop, you may want to check for updates before revisiting the Education Section.
Thank you, @KrisD15! I came across the same issue. I started school in January 2021 but paid some tuition in 2020. I didn't realize until this year that I got a 2020 1098-T, so I didn't include it in my taxes last year. My 2020 1098-T has nothing in box 2 but it does have an amount in box 1 and box 7 is checked. I am planning to do an amendment to my 2020 taxes.
For 2021, after filling out the step-by-step information, Form 8863 Part III #22 a (3) (Did the student receive Form 1098-T from this institution for 2020 with box 7 checked?) has the answer as NO. But technically I did receive a 1098-T in 2020 with box 7 checked. It sounds like TurboTax puts NO, because box 2 was empty. Is that how it works?
If I amend my 2020 taxes to add the 1098-T, will it be flagged because I said NO on this question in 2021?
No, your 2020 Amended Return will not be flagged for an incorrect 1098-T entry on your 2021 return. Have you already filed your 2021 return? If not, you could change your answer.
Basically, the checked Box 7 means you paid for Education Expenses in 2020 for 2021. In order to get credit for what you paid in 2020, you need to include the amount of the expense on your 2020 return and the amount you paid.
The IRS only wants to give you credit for what you actually paid each year (even though it was the next year), so it can be confusing with the way schools report on the 1098-T.
If your 2021 1098-T correctly shows what was billed/paid in 2021, no worries. The IRS also realizes that schools don't always report correctly. Save your payment receipts for each year.
Here's more info on Form 1098-T.
@musician98
Thank you, @MarilynG. There's something weird about how the questions are set up. What's on the Wks page is not exactly what's on the 8863 form. On the 1098-T Wks page, the only question for 2020 is whether the 2020 form had both box 2 filled in and box 7 checked. The correct answer for my situation is NO, and then it leaves the answer to Part III 22 (a) 3 as NO (which is not correct, because that question only asks about box 7, which was checked). If I put YES, then it marks YES on 8863. Technically I should be answering NO to the question on the Wks form, but then it doesn't put the right answer (YES) on the 8863.
Do you get the correct result on the return? As long as you are getting the correct result on the 8863 do not worry about what the worksheet shows because it does not get filed. The worksheets are handy if there is a problem with the actual form, otherwise, if the form itself is correct, ignore them.
@JillS56, yes, I did get the right answer on the form. I just had to put the wrong answer on the worksheet, which seemed weird. Thank you!