Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
samiewolf
Returning Member

No amount in Box 1 for 1098-T, only an amount for scholarships recieved

Hello, 

So on my 1098-T, it lists nothing on box one for the amount of tuition that I was charged, but they list the full amount that I received from my Pell Grant. So it's showing on my taxes that I  just pocketed my entire grant and am now forced to pay taxes on it when I only received half my grant back and used a good portion of it for supplies. I am confused as to how they are allowed to do this, it doesn't show the whole story.

1 Best answer

Accepted Solutions
samiewolf
Returning Member

No amount in Box 1 for 1098-T, only an amount for scholarships recieved

Okay, since I couldn't get an answer that answered my question, I did some digging!
The IRS instructions for Box 1 says this "Enter the total amount of payments received for qualified
tuition and related expenses from all sources during the calendar year" Meaning that box 1 should not be empty!

View solution in original post

3 Replies
KathrynG3
Expert Alumni

No amount in Box 1 for 1098-T, only an amount for scholarships recieved

You will have a chance to report all your expenses.

 

Go to the Education Section and start on Expenses and Scholarships (Form 1098-T). Go through the entire interview, and answer all of the questions carefully. Only when a scholarship exceeds expenses is it taxable.

 

The IRS provides a list of qualified education expenses in general. To summarize from IRS Publication 970, page 6:

 

 

Qualified education expenses. For purposes of tax-free scholarships and fellowship grants, these are expenses for:

• Tuition and fees required to enroll at or attend an eligible educational institution; and

• Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution.

 

These items must be required of all students in your course of instruction. Expenses that don't qualify. Qualified education expenses don't include the cost of:

• Room and board,

• Travel,

• Research,

• Clerical help, or

• Equipment and other expenses that aren't required for enrollment in or attendance at an eligible educational institution.

 

 

Per the IRS, Tax-Free:

If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free. Scholarships, fellowship grants, and other grants are tax-free if you meet the following conditions:

  • You're a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
  • The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.
samiewolf
Returning Member

No amount in Box 1 for 1098-T, only an amount for scholarships recieved

Because I entered my 1098-t, no where after entering it did it offer to let me put in how much tuition cost. 

I went back to the area where I enter my 1098-t and input the amount that tuition cost after checking the "This is not what was paid to the school."

 

By doing this, am I okay? or is it wrong to enter tuition cost there?

samiewolf
Returning Member

No amount in Box 1 for 1098-T, only an amount for scholarships recieved

Okay, since I couldn't get an answer that answered my question, I did some digging!
The IRS instructions for Box 1 says this "Enter the total amount of payments received for qualified
tuition and related expenses from all sources during the calendar year" Meaning that box 1 should not be empty!

Dynamic AdsDynamic Ads
Privacy Settings
v