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: 
w-jia
New Member

On 1098-T While Box 5 is less than Box 1 the software recognize the full box 5 as Taxable amount (which is incorrect).

 
1 Reply
Carl
Level 15

On 1098-T While Box 5 is less than Box 1 the software recognize the full box 5 as Taxable amount (which is incorrect).

No it's not incorrect. All scholarships, grants, 529 funds are taxable income "initially". Their taxability is offset by the *qualified* education expenses they are used to pay for. Just enter the 1098-T exactly as printed, then press on through the rest of the education section.

The only qualified expenses for scholarships, grants and out-of-pocket monies is tuition, books, lab fees. That's it, with no exceptions - though "lab fees" is rather broad.

Dynamic AdsDynamic Ads
Privacy Settings
v