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warriors_tighten
New Member

My 1098 T shows 0 for boxes 1 and 2 but shows $3585.66 in box 5 for scholarships and grants. Why doesn't it show the amount that was billed to financial aid for tuition?

 
1 Reply
KrisD
Intuit Alumni

My 1098 T shows 0 for boxes 1 and 2 but shows $3585.66 in box 5 for scholarships and grants. Why doesn't it show the amount that was billed to financial aid for tuition?

You need to ask the school that question. If the scholarship in Box 5 was paid to the school in 2017, box 1 should have that same amount in it even if it was billed (Box 2) in 2016.

The IRS gets a copy of the 1098-T and this one make it look as if you need to report $3,585.66 as taxable income. My advice is to check your student account records to see if this scholarship posted to the school in 2017 and if they posted a refund to you. If the scholarship posted to the school and you did not receive a refund, but the 1098-T shows Box 1 as zero, contact the school for clarification. If the school made a mistake, make them issue a corrected 2017 1098-T. The IRS can take years to investigate a return even after your original return has been processed. You don't want to get a letter from them charging you tax, interest, and penalties on this issue. 

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