Q. If I enter different numbers on our returns than what the 1098-T shows, isn't it going to throw a red flag?
A. No. What you enter is not sent to the IRS, only the calculation results.
Q. So I just enter any figures I want, what's the point of the 1098-T then?
A. Information for you to work with*.
Q. I have not received this prompt ("Amount used to claim the tuition deduction or credit" ) once I get past the Education Credits portion.
A. That's why I provided an alternate method to enter data. But, you can try searching for it. Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to “Education Information”. When you get to the screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use or change it.
*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.
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, or report scholarship income, based on your own financial records, not the 1098-T.
