Q. Did Your Aid Include Amounts Not Awarded for 2024 Expenses? I am unsure what to put for this question?
A. It usually means the Spring 2025 scholarship was posted to the 2024 1098-T, but the 2025 Tuition wasn't. It's a frequent problem and that's why TurboTax (TT) added the question.
Q. Box 7 is not checked. Does this mean the school only counts spring and fall then for that year tax year?.
A. Yes, that's what it usually means. But you'll have to verify that from your own records or ask your school.
Q. In box 1 I have $7,109 and in box 5 I have $17,720. The remaining money I used for gas and groceries.
A. Gas and groceries and room and board are not qualified educational expenses. That is, they can not be "2024 expenses" that a scholarship can be allocated to.
Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free. Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Room & board are not QEE.
If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses.
At this point, the student has $10,611 ($17,720 - 7109 = 10,611) of taxable scholarship to report on his/her tax return $7,109.
