MonikaK1
Expert Alumni

Education

Box 5 of Form 1098-T shows the amount of scholarships and grants that were paid directly to the school for the student's expenses. Scholarships and grants may reduce the amount of qualified expenses the student can use when calculating a credit.

 

If the financial aid is more than the tuition expense, the excess needs to be reported as income. TurboTax will report the excess on the wages line of your tax return. However, you can also choose to report more of it as income and less as aid received, and possibly qualify for education credits. You just don't want to report the same amount twice as both wages and as financial aid.

 

See this TurboTax tips article for more information about Form 1098-T.

 

See also these IRS instructions regarding Form 1098-T.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post