I'm a graduate student. My 1098-T has only $984.78 listed in box 1, and $3,000 listed in box 5; entering these numbers significantly lowers my refund. However, I don't know where the amount in box 1 came from. The actual amount of my tuition (as listed on my student expense account) was $22,597.38. This was paid for partially through tuition waivers and partially by my graduate appointment. In all, I did not pay tuition or fees out of my pocket, and my grants left me with a tuition refund (money paid to me to be used for additional expenses) of about $1,560.72. Which of these numbers, if any, should be added to my forms?
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.
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.