1098 t

[user17696285823]

My box 5 is more than my box 1 because they reported my tuition for spring of 2025  in 2024 but my scholarships for spring of 2025 in 2025 (box 1 is $0 and box 5 is $9,250) i lived off campus so all of that scholarship money went to tuition for spring of 2025. TT is reporting that $9,250 as income because they didnt report my tuition in the same year as the scholarships. because tution is a tax free item can i go without reporting my 1098 t?

[AmyC]

No, the IRS will catch the income. Since the 1098-T is informational, you can correct the timing differences. Follow these steps:

1. Enter the 1098-T
2. Look for a follow-up screen that says "What if this is not what I paid to the school?"
3. Enter the amount of Spring 2025 tuition that was reported on your 2024 1098-T as a payment.
4. You can also include books and supplies purchased in 2025, if needed.
5. Review your 2024 return and see if removing that box 1 amount from your 2024 1098-T affects your AOTC credit. If so, you will may need to amend your 2024 to correct the 1098-T.  See Should I file an amended return?

[user17696285823]

if i didnt qualify for a AOTC credit in 2024 do i need to amend anthing from my 2024 taxes?

[KrisD15]

No, you do not amend your 2024 return. 

If you received an AOTC on your Tax Year 2024 return and the expenses you took for that credit were paid for by a scholarship now posted on your 2025 tax year 1098-T, you may need to "recapture" the credit. 

Basically what that means is this- you figure how much that amount of scholarship not reported for 2024 saved you in taxes on your Tax Year 2024 return, and then pay that amount of tax on your Tax Year 2025 return. 

Your 2025 TurboTax program can help you determine if the scholarship requires "recapture".

Type   education recapture   into the search-box and click the "Jump to education recapture" link

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