1098-T

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block 5 has entry and block 1 and 2 blank. prior year 1098-t has block 7 checked. is the block 5 funds taxable?

Hal_Al

Level 15

Q. Is the block 5 funds taxable?

A. Probably not, since the prior year 1098-t has block 7 checked.

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.

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 2022 expenses".