Your tuition waiver is considered tax-free assistance, and must reduce the amount of tuition and fees used to compute any tuition tax credit or deduction. Amounts paid for room and board, or its equivalent, are neither tax-deductible nor can they be used as the basis for either of the tax credits.
Tuition paid with taxable funds, such as your graduate assistantship stipend, can be counted for the tax credits or deduction.
To correct the amounts on your Form 1098-T, please follow these steps. Pay particular attention to Step 5.
- Open
(continue) your return in TurboTax, if it's not already open.
- In the search box, search
for 1098-T or 1098T (lower-case works also) and then click the
"Jump to" link in the search results.
- Answer Yes to Do you want
to enter your higher education expenses?
- If you land on the Let's
estimate how much you could get this year, click Skip this.
- If you land on the Your
Education Expenses Summary screen, first select Edit next to an existing student or
select Add a new one before proceeding.
Answer any questions that
follow. After a few screens, you'll be asked if you received a 1098-T.
Answer Yes and click Continue.
Enter your Form 1098-T exactly as
you see it, even
if you think it's wrong. Here are some important tips:
- If any boxes on your 1098-T
are blank, leave them blank. Don't enter 0 (this may cause errors later).
- If boxes 1 or 2 on your
1098-T form are wrong, enter those amounts anyway. Then click What if
this is not what I paid? right below box 2 and enter the correct amount
of tuition paid.
- Don't include grants not
already listed in Box 5. We'll ask about those later.
Click Continue when you're done entering the
information from your 1098-T. Answer any additional questions on the
following screens.
