I have a 1098T & earnings of only $1,193.60 (but they didn't take any federal income tax out of my earnings) - do I need to file taxes?

[jerrigwen7]

and the amount in box 2 is less than the amount in box 5

[SeanE1 · Accepted solution]

If you had just made $1,193.60 there would be no need to file a 2016 income tax return.  However, with the addition of your 1098-T, you may have to file, especially since you are saying that Box 5 is greater than Box 2. What this tells me is that the total of your scholarship was greater than the amount of qualified education expenses, and that the difference is viewed by the IRS as taxable income.  I would suggest that you go ahead and enter all of your information into Turbotax Free Edition and see how the numbers work out.  Any amount from your 1098-T deemed as taxable income will show up on Line 7 of your Form 1040A or Form 1040 as (SCH $amount).  I would also collect all of the financial information related to any other qualified education expenses and any out of pocket money spent for college and include this information in the education expense section of your program in the Deductions & Credits section.  You just may be entitled to an education credit for 2016 and entitled to a small refund.