AmyC
Employee Tax Expert

Education

The 1098-T is part of your tax return and is entered in the deductions and credits section of your return. The 1098-T box 1 has tuition and box 5 has scholarships. If box 5 is bigger than box 1, you would have taxable income to report. If box 1 is bigger than box 5, you may qualify for a tax credit. There are two tax credits, lifetime learning and American Opportunity.

 

However, it is often beneficial to claim some scholarship income for room and board expenses, if needed, to maximize education credit. If you do not have a tax liability, it will not help. If you are not claiming yourself, this goes on the return of the person claiming you.

 

Education credit eligibility

$80,000-$90,000

$160,000- $180,000 MFJ

 

For additional help, I recommend you look at another of my answers for help.

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