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Once I reported my 1098-t my tax refund decreased. How can this be avoided.

 
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1 Reply
KrisD
Intuit Alumni

Once I reported my 1098-t my tax refund decreased. How can this be avoided.

If your 1098-T shows more assistance (scholarships/Grants) in Box 5 than tuition paid in Box 1, the excess will be treated as taxable income and will therefore decrease your refund. 

If you used the assistance for qualified education expenses such as books and supplies, not listed on the 1098-T, be sure to enter those amounts. 

If you used the assistance for living expenses, such as room and board, that amount will be taxable income for you. 

Also, be aware that if you are a dependent, (someone else, like your parents claim you) they enter the 1098-T into their TurboTax program first and if the student needs to report taxable income from it, their program will calculate how much that needs to be. 

https://ttlc.intuit.com/replies/4194409


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