Post-9/11 GI Bill & 1098-T

[user17755128231]

I am currently a graduate student in a program that provides a tuition waiver in exchange for my work as a graduate teaching assistant. I received a 1098-T that has amounts listed in Box 1, Box 5, and has Box 8 and Box 9 checked. I'm also a veteran using my GI Bill for the housing and book stipends. However, since there's no tuition to cover, I don't receive the tuition benefit.

After inputting the information from my 1098-T, TurboTax is asking me to select all that apply, and one of the options is that I "received tax-free education assistance from an employer, GI Bill, or veterans’ program." Do I put my GI Bill benefits amount here? When I do so, it adjusts my federal tax return projection quite a bit. Or do I put it later on when it asks me to list "Other Veteran Assistance" under the "Add any other financial aid" page?

Thank you!

[Hal_Al]

"However, since there's no tuition to cover, I'm not claiming the tuition tax credit."

Why are you even  entering the 1098-T? You're apparently not eligible for a tuition credit.  What's in boxes 1 & 5? 

You do not enter the GI benefits anywhere in the 1098-T interview, since  it is  all tax free stipend and not designated for tuition. 

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one.

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. 

[user17755128231]

Thanks for the reply.

I do have amounts in Boxes 1 and 5 (Box 5 is a little over double the amount in Box 1). When I add the 1098-T, my estimated tax refund decreases, so I'm assuming there are some taxes I owe based on the information on the 1098-T?

And to be clear, when it explicitly asks if I "received tax-free education assistance from an employer, GI Bill, or veterans’ program" after I input the 1098-T information, I'm not supposed to put the housing/book benefits I received from the VA?

[Hal_Al]

Q. Are  there are some taxes I owe based on the information on the 1098-T?

A. Yes, because "Box 5 is a little over double the amount in Box 1".  

Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free.  Scholarship amounts that exceed QEE is taxable income, on the student’s tax return.

If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses. Room & board are not QEE.

Q. When it explicitly asks if I "received tax-free education assistance from an employer, GI Bill, or veterans’ program" after I input the 1098-T information, I'm not supposed to put the housing/book benefits I received from the VA?

A. Correct.  That is correct, although it's academic in your case.  Only GI benefits that are specifically designated for tuition are to be entered in that place. The intent is to reduce the amount of tuition eligible for the tuition credit.  But, you are ineligible for the credit because box 5 is more than box 1.