topic Block 5 and 6 conflict in Education

Block 5 and 6 conflict

Lawaine — Mon, 16 Mar 2020 18:02:51 GMT

My daughter graduated in April 2019. During he last semester she used the GI-Bill for part of the tuition and paid the rest with a student loan. The school applied a scholarship to her account in January 2019 and then took the money back out of her account two days later as she was not eligible. The problem is, they put the scholarship in block 5 and the retraction in block 6 (adjustments for prior years). As a result, the 1098 makes it appear that she received more than she paid. The school refuses to adjust as they say it is standard practice to apply the scholarship in the year received (2019) even though it was supposedly for the fall semester. And that the amount in block 6 is correct since the scholarship was for the Fall Semester of 2018. How do I fix this?

Re: Block 5 and 6 conflict

MarilynG1 — Mon, 16 Mar 2020 19:02:42 GMT

The amount of Education Expenses your daughter paid with her Student Loan funds would be eligible for the Education Credit. What was paid by the GI Bill would not be.

If your 1098-T is not correct, it is not required to be entered in your return, or you can enter it with 'adjustments'.

There is a box to indicate 'this is not what I paid to the school' under the Tuition Entry a blank will open where you can enter what you actually paid 'out of pocket' (screenshot).

There is also a question 'was any of the scholarship not used to pay 2019 expenses?' (screenshot) where you can enter the amount that was returned to the school.

Re: Block 5 and 6 conflict

Lawaine — Tue, 17 Mar 2020 00:56:13 GMT

Thank you very much. That approach works.