My son's 2018 1098-T shows only the fall semester's tuition but both the spring and fall 2018 scholarships. How can this be legally fixed?

[bassman00]

The 2018 1098-T shows more money in scholarships/grants than tuition due to it only including one semester tuition vs two for scholarships/grants.  This disqualifies us from the AOTC and may force my son to declare the difference as income.  Until this year, the school reported billed tuition, but now had to change to paid.  

Can I override the 1098-T as allowed in TT?  Will that cause a problem?

Do we have to go back and correct the tax returns from 2015 onward to change the tuition amounts to billed so it matches the scholarships/grants time periods?

Thanks

[KrisD]

Yes, there is a screen in the program that asks about this. 

Education credits have always been based on what was paid. This is why the schools are now required to report Box 1 on the 1098-T (what was paid).  Basing credits on the amount billed has never been correct. 

In TurboTax: 

Sign into your account  (for online, continue to "Take me to my return" and click "Pick up where I left off"

Click open the Federal section (desktop is TAB, online is on the left side-bar)

Click open "Deductions & Credits"

(Click "I'll pick what to work on" or "Show All" if needed)

Scroll down to "Education" 

Click open "Expenses and Scholarships (Form 1098-T)" 

Click Edit next to the student's name

You should get to the "Here's Your Education Summary" page

Click Edit next to Scholarships/Grant (for all schools) 

Answer "Yes" that you received a scholarship and continue  (the amount from box 5 should have auto-populated to this screen)

Answer "Yes" to the question "Did Your Aid Include Amounts Not Awarded for 2018 Expenses?" and continue

Please be sure to finish answering all interview questions in the education section and click "Maximize My Credit" if you are eligible. 

Please read IRS Pub 970 for more information. 

CLICK HERE for IRS Pub 970 Tax Benefits for Education