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cjlobaugh0812
New Member

I went to college in 2019. I did not yet receive a 1098-T from my college. Should I wait until I do receive one considering I did not pay any tuition as it was covered?

 
4 Replies
Bsch4477
Level 15

I went to college in 2019. I did not yet receive a 1098-T from my college. Should I wait until I do receive one considering I did not pay any tuition as it was covered?

If you have no education expenses to claim and did not receive any scholarship there would be no affect on your tax liability. 

KurtL1
Expert Alumni

I went to college in 2019. I did not yet receive a 1098-T from my college. Should I wait until I do receive one considering I did not pay any tuition as it was covered?

Yes, you need to wait until you receive a copy of the 1098-T from your college before you file your taxes. There is information on the form that is required on your return in the educational tax credit section.

 

If you receive general scholarship or grant aid in excess of the cost of tuition, fees, and books, the excess amount is taxable. The 1098-T will show that amount paid for tuition and fees (Box 1) and the amount of scholarship and grants (Box 5).

 

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Hal_Al
Level 15

I went to college in 2019. I did not yet receive a 1098-T from my college. Should I wait until I do receive one considering I did not pay any tuition as it was covered?

 There is also 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.

You can both use the 1098-T to enter the expenses. If you claim the tuition credit, you do need to report that you got one (the TurboTax interview will handle this) Your son should use the 1098-T because it makes entering scholarship income go smoother.

Carl
Level 15

I went to college in 2019. I did not yet receive a 1098-T from my college. Should I wait until I do receive one considering I did not pay any tuition as it was covered?

Most colleges and universities no longer issue a paper 1098-T. So you may need to log onto your online college account and go to the financials section of your account. Look for something to do with "tax documents" or whatever and see if you find it (or a letter in lieu of the actual form) there. Just be aware that you're not required to have it until Jan 31st at the latest. So just because it's not there now, doesn't mean it won't be on Jan 31st.

 

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