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Not applicable
posted Apr 10, 2025 7:00:39 AM

Received one W2, one 1042-S, and two 1098-Ts - Taxes are owed.

Good day, y'all.

 

So, I have a W2, 1042-S, and two 1098-Ts.

 

The moment I insert the 1098-Ts into TurboTax I go from having a refund to owing several thousand dollars in taxes, both federal and state.

 

What am I doing wrong?

0 2 501
2 Replies
Expert Alumni
Apr 16, 2025 6:14:50 AM

It depends. Do the 1098T have amounts in Box 5 that are greater than the amounts in Box 1.  if so, you are being taxed on excess scholarship amounts.

Level 15
Apr 16, 2025 7:41:56 AM

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. Room & board are not QEE.

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.