1098-T & Additional Expenses

Forum|Forum|3 months ago
March 31, 2026
1 reply
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I have a Form 1098-T where Box 1 reported ~$1000 and Box 5 reported ~$5k. Since Box 5 exceeds Box 1, TurboTax is asking me to fill Form 8615. However, the scholarship was already applied to the tuition before we paid, so the original tuition is much higher than what Box 1 reports. So to my understanding, that scholarship shouldn't be considered taxable income since it was fully used for the tuition discount.

Based on reading online forums and articles, it sounds like I need to report the difference under "Additional expenses", but I'm not seeing where this info goes in TurboTax. The closest thing I see is "Required books and materials from the school", but I'm not sure if that's the same thing.

Any thoughts and guidance would be appreciated, thanks.

NCperson

Level 15

@tikkikkit21 you may want to check with the school and see if there is a timing difference of some sort of when they posted certain items. When the school reports the Box 1 and Box 5 amounts, they are not netting anything together. Box 1 is solely Qualified Educational Expenses (QEE) and it is not reduced by scholarships. Box 5 is soley scholarships and is not reduced by QEE.