On my MA state return, it asks for the total amount of scholarships on 1098T. Why is that amount deducted from what I paid in box 1 to determine my college expenses?
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avey04
New Member

On my MA state return, it asks for the total amount of scholarships on 1098T. Why is that amount deducted from what I paid in box 1 to determine my college expenses?

 
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PhyllisG
New Member

On my MA state return, it asks for the total amount of scholarships on 1098T. Why is that amount deducted from what I paid in box 1 to determine my college expenses?

The following is the method used to do the Form 1098-T calculation:

The Form 1098-T Box 1 will reflect the total amount of tuition that was paid.  If Box 1 and 5 have the same amount it means that none of the scholarship is taxable.

If Box 5 exceeds Box 1 it indicates that you will do the math to subtract the difference and report it on your tax return.

If Box 5 is less than Box 1 then it means that you may qualify for an education credit.


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