In my last semester of college (spring 2016) i had qualifying expenses of $2255 and received scholarship/grants in the amount of $2356. My 1098T shows $0 in Box 2 and the $2356 in box 5. My question is, should box 2 be $0, or should it include what my e

[KrisD · Accepted solution]

For tax year 2016, the IRS requires schools issue a 1098-T with the option of reporting either Box 1 “Amount received by the school” or Box 2 “Amount billed by the school”.

This can be confusing because often the school bills in December for classes that start in the next year.

Apparently your 1098-T shows 0 in box 2 because nothing was billed in 2016.

You can claim what was paid in 2016, so you might need to rely on your student account statement.

If the statement reflects what you say, the $2356 scholarship applied to the $2255 Spring tuition, you will enter the 2016 1098-T into the TurboTax program, however under box 2 you can click on "What if this is not what I paid to the school" and enter $2255 if that is what the school received in 2016 via the scholarship.

You can also add any other expenses you paid in 2016, such as books and supplies.

Make sure you keep a copy of your statement, and any receipts, for your file.

If there is excess funds from the scholarship, you may need to add that as taxable income.