TWO FORMS 1098-T

Forum|Forum|1 year ago
February 21, 2025
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Hi. My son 19 is student and has two forms 1098-T and a W-2 around $4200.

One 1098-T just has tuition amount no scholarship number and the other on has $12000 tuition and box 5 is $19500. Can I take the first one on my tax return the second one goes to his tax return + his W-2?

Thanks

Hal_Al

Level 15

Q. Can I take the first 1098-T on my tax return the second one goes to his tax return?

A. Yes, you can, but it's probably not best.

A 1098-T can go on both the parent and student's tax return, if needed.

You don't say how much tuition is on the first 1098-T. You only need $4000 to claim the American Opportunity Tuition Credit (AOTC). That means the rest of the tuition (on the first 1098-T) can be used by him to reduce how much of the scholarship is taxable. Yes, tuition from one school can be allocated to scholarship from a 2nd school, for tax purposes. If the 1st 1098-T has less than $4000 in box 1, you want to claim some of the tuition from the 2nd 1098-T for the AOTC, even if he has to pay a little more tax on the scholarship. The AOTC is 100% of the 1st $2000 and 25% of the 2nd $2000.

The TurboTax (TT) interview can handle this situation (2 1098-Ts split between two tax returns) but it can get tricky. Short cuts can be used. Reply back if you need detailed help.

MANI1346Author

Level 5

I think you did not read correctly my question you have some typo. First one of 1098-T just have a number for tuition. The second one has tuition less than scholarship number. Can I take the first one for my tax return to take AOTC and the second one goes to son tax return +his W-2?

$4200 was for W-2 not for AOTC, I totally did not understand but thanks.

you said: A 1098-T can go on both the parent and student's tax return, if needed.

A 1098-T should be on my return or my son return, never goes in both return.

MANI1346Author

Level 5

The 2nd 1098-T is not needed on YOUR tax return. It is needed on his tax return, if he is going to file a tax return. Based on the numbers you provided, he doesn't need to file unless he wants a refund of withholding shown in box 2 of the W-2.

You still haven't said how much tuition was on the first 1098-T, The amount over $4000 can be used to reduce his taxable income. Although it won't matter, he's already under the filing requirement. So, none of it will be taxed.

Thanks, first one the tuition box 1 is $660.

When I enter this amount (first 1098-T) on my return I can take AOTC, system shows me this credit. $264 refundable and $396 nonrefundable. My son's withholding is $6 on his W-2 so if the second one which does have scholarships more than tuition ($12000 tuition and box 5 is $19500) enters on his return he should pay tax $170.

Since dependent not eligible to take AOTC.

Hal_Al

Level 15

We've explained a lot of the whys and wherefores of your situation, but to simplify the answer to your basic question:

Q. Can I take the first one on my tax return the second one goes to his tax return + his W-2?

A. It depends on how much is in box 1 of the first 1098-T. If it is more than $4000, yes you enter only the first 1098-T on your return. On his return, he enters both of them and follows the interview. In particular, be on the lookout for a screen “education expenses used for a tax credit”. It will usually be prepopulated (sometimes with $10K instead of the more appropriate $4K). You can change it for the amount you want to allocate to the AOTC, $4000 in your case. .