It really depends. You receive a Form 1098-T when you paid tuition amount to your school. On the form, Box 1 is how much tuition you have paid. Box 5 is your scholarship amount received. If you only have an amount in box 1, you should qualify for an education tax break. If you have an amount in box 5, it depends. Please continue to read:
When you also received a scholarship that fully covers your qualified education expenses, it is like a wash. You do not get any tax break. If your scholarship does not cover all of your education expenses, you may still claim either a credit or deduction on your tax return. However, if your scholarship exceeds your education expenses, the difference will be treated as wages added on line 1 of your Form 1040. If you meet certain requirements, you may qualify for an education tax break including the American Opportunity Tax Credit AOTC, Lifetime Learning Credit or Tuition & Fees deduction. To see if you qualify, here are the links:
Qualified expenses
Deductions
Credits
I will recommend you to continue to enter your Form 1098-T in the program and let the program calculate and verify if you qualify for any education tax breaks. Here are the steps:
In TurboTax online,
- Sign in to your account, select Pick up where you left off
- At the right upper corner, in the search box, type in "1098t" and Enter
- Select Jump to 1098t
- Follow prompts
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