Scholarships and grants are larger than payments received?

[VMS25]

Last tax year (2023) my school included my spring 2024 payment on the 1098-T, but they did not include the scholarships and grants for that semester. I attended the spring and summer semesters in 2024. On 2024 1098-T in box 1, the school only included the payments received for the summer semester, but included the scholarships and grants for the spring semester as well. TurboTax is claiming the difference between box 1 and 5 as my income, so I'm having to pay extra taxes for the scholarships that were applied to my spring 2024 bill (which I paid in December 2023). 

Can I get the 1098-T revised so that it includes the amount paid for the spring semester? Or can I have it revised that the form only includes the scholarships and grants received for the summer semester? Either way, I think I'd have to reach out to the school for that, but is there another workaround in this situation?

[KrisD15 · Accepted solution]

Yes, there is a better way.

You can adjust the entry of the 1098-T but also be aware that you should look over your tax year 2023 return and make sure you did not use those expenses on your 2023 return to claim an education credit. 

After you enter the 1098-T, finish that interview. 

On the "Here's Your Education Summary" screen

Scroll to "Scholarships/Grants (for all schools)"    select START or EDIT

Continue to the screen that asks "Did Your Aid Include Amounts Not Awarded for 2024 Expenses?"

Select YES and enter the amount of scholarship to exclude (the amount that was billed in 2023)

Be sure to go through and complete the entire education interview until you get to the "Maximize my tax break" screen 

[Hal_Al]

Q. Can I get the 1098-T revised so that it includes the amount paid for the spring semester?

A.  You will have to ask your school.  That said, the real answer is NO.  Based on numerous posts, on this forum, the schools just won't do that. 

But, you don't need it. 

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. 

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)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2024 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.

[VMS25]

Thanks! That's exactly what I needed to do.