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cojoro5975
New Member

Received corrected 1098T after IRS accepted my return

My return was accepted by IRS today.  Last week after I filed, I received a corrected 1098T for my son.  Box 1 increased from 10,122.83 to $11,255 and Box 5 increased from $3,706.00 to $7,626.  I want to know if this change will have an effect on my refund - up or down.  I did take the tuirition credits offered and my son will not claim on his taxes.

 

Do I need to send an amended return?  Some sites say if it doesn't make a change in the refund, then no,  but keep both copies.  The problem is that I dont know if there is a change because I did through TurboTax and cant do another return.  Help!!

 

Mostly want to know if it will take away money from my return and I will need to refund the IRS.

2 Replies
DawnC
Employee Tax Expert

Received corrected 1098T after IRS accepted my return

The only way you are going to know if it changes your tax liability or the refund amount is to prepare the amendment.  If there is a reportable change, file it.  If not, cancel the amendment.   The amendment software for Form 1040X is not ready yet.   But when it is, use the instructions here to determine whether or not you will need to file Form 1040X.    It is a pretty common occurrence, but at least starting in 2020, you can e-file the amendment if you have to file one!  

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Hal_Al
Level 15

Received corrected 1098T after IRS accepted my return

I assume you claimed the maximum $2500 American Opportunity Credit (AOC).  It only takes $4000 of qualified expenses to get the maximum AOC.

 

 $11,255 minus $7,626 = $3629.  You would only need an additional $371 of book & computer costs to not need to amend.

 

Even if you have no other expenses, the difference in your return is only $93 ( $371 x 25% = $93).  You would have to repay that $93.

 

That said, the 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return*. You claim the tuition credit  based on your own financial records, not the 1098-T.  If you did that the first time, there is no need to amend just because you got a corrected 1098-T.

 

But wait; there's more.  Even if you agree with the corrected  1098-T, you don't have to amend. Instead have your son declare $371 of his scholarship to be taxable income, freeing up that much more tuition for you to use for the AOC.

 

*If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

 

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