topic 1098-T not calculating correctly in Education

1098-T not calculating correctly

tweekzilla — Fri, 07 Feb 2020 21:18:42 GMT

My Wife's 1098-T has a scholarship/grant that covers part of the total tuition costs in box 1 - i.e. we had to pay some money towards tuition. When I enter the 1098-T it want's to tax all of the scholarship amount in box 5 but that should be except as it went towards tuition.

How do you correctly input the 1098-T to tell turbo tax that the scholarship is exempt?

Re: 1098-T not calculating correctly

DanaB27 — Fri, 07 Feb 2020 21:59:51 GMT

Usually, you just enter the 1098-T as shown and got through the follow-up questions. Please see Where do I enter Form 1098-T? for details.

Just to verify the scholarship in box 5 was smaller than the amount in box 1 and your wife didn't receive any other reimbursement of education expenses except what is listed in box 5?

When previewing the1040 the whole scholarship is included in line 1 "wages, salaries, tips"?

To preview 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "1040" on the left

Re: 1098-T not calculating correctly

tweekzilla — Fri, 07 Feb 2020 22:19:13 GMT

Yes the amount in box 5 is smaller than box 1. My Wife received a 70% scholarship. Note that I also entered the amount paid to be the difference between box 1 and box 5. I made sure to tick no in the section that asks if the scholarship was used for board/lodgings etc.

What is really weird is that on line 1, when I input the 1098-T it puts in SCH xxxxxx (where xxxxx is the whole scholarship amount). So to confirm the whole scholarship amount is added into line 1

Re: 1098-T not calculating correctly

tweekzilla — Fri, 07 Feb 2020 22:44:56 GMT

FYI It was doing something odd. I deleted the 1098-t worksheet and the deductions info and re-entered and it seemed to work this time..... Probably user error but a bit confusing.

Ross

Re: 1098-T not calculating correctly

LinaJ2020 — Fri, 07 Feb 2020 23:02:22 GMT

Great! I am glad you got that figured out.