Should I file the 1098-T form I received, even though I have not payed anything in?

[hell719485]

I received a 1098-T from the college I went to with an amount of around $800. I remembered I had an issue with them trying to make me pay that exact amount, even though it was supposed to be covered by my student loans. When I went and checked with the school, they were still trying to make me pay it. I got them squared away and they (finally) corrected their mistake, but they could not tell me why I received the 1098-T, if it was a mistake, or if I should even file it. Should I still file this?

[BrittanyS]

If you paid your tuition or any approved education expense with student loans, the IRS considers this paid out of pocket, as you will repay the loan in the future.  You can file the 1098-T with your return.  If your amount was paid with financial aid that you are not paying back, you are not paying anything out of pocket and do not have to file the 1098-T with your return.  To file the 1098-T with your return in TurboTax, you will follow these steps:

1. Click Deductions and Credits
2. Scroll down to Education, click show more
3. Click Expenses and Scholarships (Form 1098-T)
4. Answer interview questions

[Hal_Al]

Q. Should I file the 1098-T form I received, even though I have not payed anything in?

A. No. Just because you got a 1098-T does not mean it needs to be filed.  That said, it may be beneficial to file 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 are your parent's dependent, they should claim the 1098-T and the tuition credit.  You (or your parents) can claim Tuition and other qualified expenses paid with loan money. 

If you claim the tuition credit, you do need to report that you got a 1098-T 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. 

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.