Solved: Is the amount of scholarships/grants shown in box 5 of form 1098-t subtracted from the amount of tuition paid shown in box 2?
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ajschref
Returning Member

Is the amount of scholarships/grants shown in box 5 of form 1098-t subtracted from the amount of tuition paid shown in box 2?

Turbo tax and/or my 1098-t seem to be subtracting scholarship amount in box 5 from the tuition/related expenses amount in box 2 when actually the tuition/expenses amount shown is the amount I actually paid AFTER the scholarship was applied to my daughter's tuition.  This is making a huge difference in my taxes because it is then treating some of my distribution from our 529 college savings account as not qualified and taxing and penalizing it because it appears that I didn't pay as much tuition as the 529 withdrawal.  The 529 distribution amount is actually mush less than the tuition I paid.  How do I fix this?

1 Best answer

Accepted Solutions
AnthonyC
Level 7

Is the amount of scholarships/grants shown in box 5 of form 1098-t subtracted from the amount of tuition paid shown in box 2?

Yes, TurboTax is subtracting that amount and that is how it is supposed to be done.  But, when you have box 2 reporting, sometimes you need to make adjustments to that number as your case shows.

You can enter your total tuition and fees expenses instead of using the box 2 reported number using the following steps

  • Log into your account and click Take Me to My Return (you must click this before performing the search below)
  • Click the search icon (magnifying glass in top right-hand corner)
  • Search for "1098T" and click the "jump to 1098T" link that appears
  • This will bring you to the Education Expenses section where you can add a student and related Form 1098-T information
  • There will be a blue link underneath box 2 that details what if this is not the correct amount - click that link and a new box will open for you to input the correct amount of total tuition paid, include the amount paid by scholarship since the program will subtract the box 5 amount (see screenshot)
  • Be sure to also include the other information from your Form 1098 such as scholarships and grants
  • You can then proceed with the rest of the interview

View solution in original post

1 Reply
AnthonyC
Level 7

Is the amount of scholarships/grants shown in box 5 of form 1098-t subtracted from the amount of tuition paid shown in box 2?

Yes, TurboTax is subtracting that amount and that is how it is supposed to be done.  But, when you have box 2 reporting, sometimes you need to make adjustments to that number as your case shows.

You can enter your total tuition and fees expenses instead of using the box 2 reported number using the following steps

  • Log into your account and click Take Me to My Return (you must click this before performing the search below)
  • Click the search icon (magnifying glass in top right-hand corner)
  • Search for "1098T" and click the "jump to 1098T" link that appears
  • This will bring you to the Education Expenses section where you can add a student and related Form 1098-T information
  • There will be a blue link underneath box 2 that details what if this is not the correct amount - click that link and a new box will open for you to input the correct amount of total tuition paid, include the amount paid by scholarship since the program will subtract the box 5 amount (see screenshot)
  • Be sure to also include the other information from your Form 1098 such as scholarships and grants
  • You can then proceed with the rest of the interview

View solution in original post

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