Tried working through this with Intuit phone support, but to no avail. Thought I would give this a try. Hopefully someone from Inuit Tech Support will see this and provide a resolution.
TurboTax is generating a Form 1040 Schedule 1 due to a 1098-T even though there is NO additional income to report. Seems like TurboTax should not be including Schedule 1 in the forms to be filed since there is no income to report on Schedule 1. Is this a bug?
Here is the scenario:
Using 2022 TurboTax Premier desktop (with latest updates installed) on a Windows 10 PC.
Working on tax return for my college grad which I plan to file electronically.
Received a 2022 1098-T with $5,500 in Box 5 (Scholarships) and Box 8 (At least half-time student) checked. No amounts in any other boxes including Box 1 (payments). Payments for the final semester (Spring 2022) were charged and paid for in Dec 2021 (and appeared on the 2021 1098-T), but scholarship was not posted until Jan 2022 so it appeared on 2022 1098-T.
Entered the 2022 1098-T here: Federal Taxes > Deductions & Credits > Education > Expenses and Scholarships (Form 1098-T).
Then went through the Scholarships/Grants workflow and on the “Did Your Aid Include Amounts Not Awarded for 2022 Expenses?” screen, I clicked YES and entered $5,500. This prevents the scholarship from being included as income.
The result of this was TurboTax generating a Form 1040 Schedule 1 (Additional Income and Adjustments to Income) with a 0 on line 8r, a 0 on line 9, and a 0 on line 10.
Tried deleting the Schedule 1, but TurboTax just immediately recreates it.
My college grad has NO additional income and NO adjustments to income, so why is TurboTax generating a Schedule 1 as a form required for filing the tax return?
Scenario 2:
Just for the heck of it, I started over. I deleted the 1098-T which also deleted the Schedule 1. I added the 1098-T back in, but this time I put $5,500 in box 1 (Payments) and $5,500 in box 5 (Scholarships). This prevents the scholarship from being included as income. I did not go through the Scholarships/Grants workflow.
The result of this was the same as the first scenario. TurboTax generated a Form 1040 Schedule 1 (Additional Income and Adjustments to Income) with a 0 on line 8r, a 0 on line 9, and a 0 on line 10.
Tried deleting the Schedule 1, but TurboTax just immediately recreates it.
Again, my college grad has NO additional income and NO adjustments to income, so why is TurboTax generating a Schedule 1 as a form required for filing the tax return?
