Q. 1. Given that educational institution also sends the 1098-T to the IRS, doesnt the IRS system notice if different numbers are used in preparing the return?
A. Apparently not. I (a person, HAL AL) have not seen a single post of an IRS notification based on a 1098-T discrepancy
Q. If box5 amount is greater than box1 amount, the difference might potentially be taxable?
A. Yes. TurboTax (TT) will treat the difference as taxable, unless the user enters additional qualified expenses (typically books and a computer). Room & board (R&B) are not qualified expenses.
Q. Does a full-ride scholarship (merit-based or efc=0) create a potentially large taxable income situation for a student attending a university where room&board costs are high?
A. Yes.
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