Military Tuition Assistance Payback

[Johnwicksuing]

I used TA to sign up for four of my classes. I was only able to complete one class and had to payback the amount for three classes which was $2962.44. On my form 1098-T box #5 (Scholarships or grants) it says that $3949.92 was the amount . How do I claim for the amount of $2962.44 that I paid? Do I contact my school to update my form 1098-T? Any help would be appreciated. Thanks

[DaveF1006]

Yes, you would need to contact the school to issue a corrected 1098-T to reflect the amount that you repaid.

[Hal_Al]

Ideally, you get a corrected 1098-T from the school.  But, based on numerous posts, in this forum, you're unlikely to get any help from the school.  They "always" say their form is correct. 

So, just adjust the numbers that you enter in TurboTax. 

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 possibly you have taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2023 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.

Even though you did not complete the courses, you are still allowed to claim the tuition credit based on the net amount "you paid" (apparently $2962).