How to handle 1098T questions for grad student with stipend who received W2 and 1098T.

[jamesallen39]

I am a grad student who receives a stipend.  The stipend income is reported on a W2 since that is my only income and I got one from the school.  I also got a 1098T and box 1 appears to have tuition paid by the school as part of program but in box 5 it looks like it lists basically the stipend amount.

So do I enter the 1098T and then just list the box 5 amount to answer the question about amount already included in W2 income.  If I don't I seem to be taxed twice or something.

Also if the school is really paying the tuition reported in box 1 do I even file the 1098T.  If I do file it, and do what I said above it says I qualify for LLC education credit. Confused. Help.

[Hal_Al]

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 2024 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. Is the school  really paying the tuition reported in box 1?

A. That's a little unclear. But, apparently, No, if you are paying with your own earned income (reported on a W-2 and taxed). It's strange they would do it that way. 

Q. So I even file the 1098T?

A. Yes, in order to claim the LLC, you must report that you received a 1098-T.  But, you can modify it. 

Q. Do I just list the box 5 amount to answer the question about amount already included in W2 income.  

A. Yes, if the full box 5 amount matches the W-2.  That's the official way to handle it in TurboTax.  But, just adjusting the numbers at the 1098-T screen is easier. 

[KrisD15]

If your tuition was covered/paid (FREE FOR YOU), and you ALSO received a stipend which is on your W-2, the 1098-T would not be reported.

You need to know what is reported where. Yes, Box 1 on Form 1098-T is what the school is reporting they received in the tax year. Who paid that? You or was it covered as part of a scholarship or qualified tuition reduction?  

Box 5 is reporting the amount of aid, such as scholarships, that went through the school in your name. 

Your stipend is on your W-2, so that has been taken care of as far as being reported as income. 

You say "Tuition paid as part of the program", I don't know if you mean it was paid for by some program you're in, or you mean that was the tuition charged for the program you're in. Whether you enter the 1098-T depends on who paid that. 

Yes, if box 5 is reporting what in also on your W-2, enter that same amount when the program asks if Box 5 was reported and entered on a different tax form. 

No, if the school is covering your tuition payments, and there was no payments made out-of-pocket, (the amount in Box 5 which is also on your W-2 is the same as your out-of-pocket)  no, you wouldn't be eligible for a credit and you would not enter the 1098-T, however if you paid any of the tuition, (including the amount listed on your W-2) you would enter the 1098-T and you could be eligible for a credit.

@jamesallen39