topic 1098-T Issues in Get your taxes done using TurboTax

1098-T Issues

Pasaka — Sun, 26 Jan 2025 06:09:11 GMT

I'm married and filling jointly. My gross income is $125,000 and my wife is a student. She got her 1098-T and her scholarship ($53,550) is more than her tuition ($16700) for 2024. Because of this, we are been asked to pay tax of about $8600 which is ridiculous because:

1. That $53,550 is the total amount for the 16 month accelerated program which she just started in Fall 2024.

2. The difference ~$37,000, has not been given to her in a form of check or cash.

Could this be a mistake from the school? How do I enter this number to reflect exactly how much she paid in 2024?

Re: 1098-T Issues

MindyB — Sun, 26 Jan 2025 17:10:00 GMT

You need to indicate that the $37,000 was not for 2024.

Here is how:

Navigate to Federal > Deductions & Credits > Expenses and Scholarships (Form 1098-T)
Add/Edit, Choose edit again when you see your wife's name and school
Choose edit next to "Scholarships/Grants (for all schools)"
Continue to the screen that is entitled "Did her Aid Include Amounts Not Awarded for 2024 Expenses?"
Choose yes, and enter the amount for future tuition
Remember to include that same amount as scholarship income next year, when the education expenses are‌ reported.

Re: 1098-T Issues

Pasaka — Sun, 26 Jan 2025 17:25:28 GMT

As you can see, there is no option for that question.

Re: 1098-T Issues

Pasaka — Sun, 26 Jan 2025 17:31:23 GMT

I just saw it. Thanks.