wnaples
Returning Member

1098-T

My daughter received a 1098-T which I reported on my taxes as I claimed her as a dependent. The amount from Box 1 was imported to my taxes using Turbo Tax Deluxe. My question:  I made out of pocket payments directly for her Tuition during 2019 but I am not sure where to record these payments in Turbo Tax Deluxe, do I add my out of pocket payments to the amount in Box 1 on the 1098-T?

Hal_Al
Level 15

Education

Simple answer: yes.

But, do it this way: 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. 

The 1098-T is only any 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 deduction or possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, based on your own financial records, not the 1098-T. 

wnaples
Returning Member

Education

Thanks for your speedy reply, much appreciated. What if the amount I paid out of pocket towards her tuition is less than the amount in Box 1? Also, the interview/tutorial did not show me that link?

Hal_Al
Level 15

Education

You claim the tuition credit, based on your own financial records, not the 1098-T.  If the amount is less, then that's the amount you use. 

That said, it is unusual for that to happen. The amount in box 1 not only includes what you paid, it also includes amounts paid directly to the school by scholarships and loans.

 

That link should be there.  If not, just change box 1 to what was actually paid, according to your records. 

wnaples
Returning Member

Education

Ok Hal_Al. You have been great help!