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scroccas
Returning Member

Should all of the money in that box 5 1098 T be reported as income or educational expenses since it was all used for tuition?

I am confused by the format questions used to in the turbo tax program pertaining to box 5 of the 1098 T form.

1 Reply
LinaJ2018
Intuit Alumni

Should all of the money in that box 5 1098 T be reported as income or educational expenses since it was all used for tuition?

It depends.  Let me simplify it so you can understand better.

If your scholarship amount in box 5 equals to the tuition amount in box 1 or 2, it means all tuition is fully paid by your scholarship hence nothing is taxable.  

If your scholarship amount box 5 exceeds the tuition amount, it means you receive more free money to cover your tuition, then a portion of the scholarship (the difference) will be taxable as wages on line 1 on the new Form 1040.  

If your scholarship amount is less than your tuition, it indicates you pay some of your expenses out of pocket hence you might qualify for an education credit.  

Hope this helps! 

.  

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