Hal_Al
Level 15

Education

Q. : Box 1 is Blank but Box 5 has amount do I still have to file 1098T?

A.  Probably. 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.  You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T.

 

You say your  tuition was paid for completely by some deal that your old high school has with the community college.  This is called a tuition remission and would explain box 1 being blank.   So, if the scholarship, shown in box 5 is over and above the tuition remission, then it is most likely taxable income to you.  

 

Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials, including a required computer) is tax free.  Scholarship amounts that exceed QEE is taxable income, on the student’s tax return.

 

So, in TurboTax (TT), you enter the 1098-T.  Then you enter book and computer expenses and TT treats the difference as taxable.