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alexzal
New Member

I received my 1098-T form from my university telling my tutition statement and I do not know where to enter this information in the turbo tax app. I want to enter such information to hopefully get a b

 
1 Best answer

Accepted Solutions
Hal_Al
Level 15

I received my 1098-T form from my university telling my tutition statement and I do not know where to enter this information in the turbo tax app. I want to enter such information to hopefully get a b

Simple answer: 

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --Education Expenses

 

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 deduction or possibly your student has taxable scholarship income. 

 

If the student is a dependent of his parent's, then the parent claims the tuition credit, not the student.  And the parent enters the 1098-T on their tax return.

If the student has taxable scholarship, he reports that on his tax return.  He enters the 1098-T in the same place in TT. 

It's possible, but rare, for both the student and parent to enter the 1098-T (with some adjustments). The student can  claim more of his scholarship as taxable to allow the parent to claim a tuition credit.

_________________________________________________________________________

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 See https://www.irs.gov/Individuals/AOTC

__________________________________________________________________________

There is a tax “loophole” available. The student reports all his scholarship, up to the amount needed to claim the American opportunity credit, as income on his return. That way, the parents  (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.

Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return.

View solution in original post

2 Replies
Hal_Al
Level 15

I received my 1098-T form from my university telling my tutition statement and I do not know where to enter this information in the turbo tax app. I want to enter such information to hopefully get a b

Simple answer: 

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --Education Expenses

 

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 deduction or possibly your student has taxable scholarship income. 

 

If the student is a dependent of his parent's, then the parent claims the tuition credit, not the student.  And the parent enters the 1098-T on their tax return.

If the student has taxable scholarship, he reports that on his tax return.  He enters the 1098-T in the same place in TT. 

It's possible, but rare, for both the student and parent to enter the 1098-T (with some adjustments). The student can  claim more of his scholarship as taxable to allow the parent to claim a tuition credit.

_________________________________________________________________________

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 See https://www.irs.gov/Individuals/AOTC

__________________________________________________________________________

There is a tax “loophole” available. The student reports all his scholarship, up to the amount needed to claim the American opportunity credit, as income on his return. That way, the parents  (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.

Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return.

View solution in original post

Carl
Level 15

I received my 1098-T form from my university telling my tutition statement and I do not know where to enter this information in the turbo tax app. I want to enter such information to hopefully get a b

I suspect that 2019 was your first calendar year attending college. Be aware that as an undergraduate, I seriously doubt you will be the one to report any education stuff on your own tax return. It's more likely that your parents will report it, and not you. That's because your parents more than likely qualify to claim you as their dependent, and if so they should.

 

 

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