Daughter is a college dorm RA, received W-2 and 1098-T which does not show room and board or stipend, do I need to worry about it?

[LinaJ2020]

If she meets the filing requirements with the W-2, she must file.  See below images for filing requirements

Did you pay any qualified education expenses out of pocket?  If you did not, you do not report the Form 1098-T.  How is the Form 1098-T reported?  If you receive a scholarship used for room and board or stipend, you need to report it.  Did the school report it anywhere else if not 1098-T?    My concern is if the school did report those income amounts, like stipend, room and board on any tax document, IRS will receive a copy and they will expect you to report it on your taxes.  You might want to contact your school to verify.

[ChristyKrismutt]

I've seen others say that because an RA is a full time student living on campus and working as an RA that room/board/meal plan is not taxable. W-2 only shows her federal work study income and 1098-T only shows actual tuition/fees and actual scholarships. Her earned income is not enough for her to file a tax return.  So according to you, you are saying she should report what they charge for room/board/meal plan? As others have stated this is confusing.

[DavidD66]

RA's are not required to claim room and board as income.  It is considered a benefit provided for the convenience of the employer (the school).  Your daughter's job as an RA requires her to live in the dorm.  Similarly, meals are provided onsite as convenience for the school.  If they provided her a housing and/or meal allowance it would be taxable.  But providing it on campus is not.

[Hal_Al]

Yes, for a full time student living on campus and working as an RA that room/board/meal plan is not taxable.  The fact that it was not shown on a W-2,1099 or 1098-T is just further proof that it is  not taxable.  Do not report it as income.

[ChristyKrismutt]

Okay I called the school to verify what is reported on the 1098-T. They did include RA room/board/meal plan stipend into box 5 (scholarships/grants) money but only comes out to less than $7k. She also has a $1500 housing grant from Spring semester 2019 that I forgot about.

So now I'm very confused as to how to enter this and if my daughter will need to file taxes. She made less than $4k through federal work study job for the whole year.

[Hal_Al]

Report only the income she has documentation for (W-2 & 1098-T). Forget the$1500 housing grant from Spring semester (it's either alteady included on the 1098-T or is not taxable (or was reported on the 2018 1098-T).

Her taxable income appears to be less than $4000 + less than $7000 = less than the $12,200 filiing threshold. She does not need to file a tax return, unless there was income tax withholding (box 2 of the W-2) to claim a refund of.

That's the simple aswer. Here comes the fun part: 

There is a tax “loophole” available. The student reports all his scholarship, up to the amount needed to claim the American opportunity credit, as income on his return. That way, the parents  (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.

Using an example: Student has $17,000 in box 5 of the 1098-T and $10,000 in box 1. At first glance he/she has $7000 of taxable income and nobody can claim the American opportunity credit. But if she reports $11,000 as income on her return, the parents can claim $4000 of qualified expenses on their return.

[ChristyKrismutt]

Thanks Box 1 is higher than box 5 by $12k and we planned to claim her as a dependent as we pay all her bills and she still technically lives with us.

[Hal_Al]

If box 1 is higher than box 5 by $12k, none of the $7000 RA room/board/meal plan stipend in box 5 is taxable.  You are allowed to apply that $7000 against the $12,000 in box 1, making the $7000 tax free scholarhip, not wages.

[NCperson]

but won't the IRS catch that a w-2 was issued and not reflected on the students tax return if they do a 'match'? 

[Hal_Al]

As I understood the post, student has $4000of income on a W-2 and $7000 in box 5 of the 1098-T (additional detail obtained, by the parent, by making an inquiry to the school).  He will be reporting the $4000, but not the $7000.

[abcdefghijk]

Can you help me with this question? Thanks so much 

https://ttlc.intuit.com/community/college-education/discussion/can-you-help-me-figure-out-taxable-sc...

[abcdefghijk]

Super Hal_Al- Can you help me figure out taxable scholarship amount and how you got that number?

1098-T- Box 1- $4521 ($3728 plus $793 in fees) Box 5 $14167 

Required Books $156.35

1099-Q Gross Distribution $3728 Qualified education program, 529- prepaid tuition

Dorms- Room and Board- $6615.41

Thanks so much - 

[abcdefghijk]

1098-T- Box 1- $4521 ($3728 plus $793 in fees) Box 5 $14167 

Required Books $156.35

1099-Q Gross Distribution $3728 Qualified education program, 529- prepaid tuition

Dorms- Room and Board- $6615.41

Thanks so much - 

[ccchlfields]

My question is my child is a resident of IN, goes to school in MI.  Worked for college in MI during summer.  W2 shows Box 1 $6400, Box 3&5 $4900.  Why the difference?  Box is $445.  She paid no MI or IN taxes.  Does she have to file MI and IN state taxes?  1099Q Box is $6700.  1098T Box 5 is $22636.  Does this mean she has to file a tax return because $6400+$6700=$13,100>$12,200?

[Hal_Al]

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