topic Tuition Remission Not Recognized? in Education

Tuition Remission Not Recognized?

Sebros — Tue, 23 Mar 2021 14:08:14 GMT

I'm a bit confused. I'm a graduate student, and part of my aid is that I get tuition remission - this money is being used for only my tuition. I'm a full time student, this tuition remission is tax free for me. But when I submitted it to Turbotax, it's just claiming that this amount is scholarships. Do I need to just manually change the amount or is there somewhere that I can report that it's tuition remission? Also, in that case, would I also remove the tuition amount?

I'm super confused and could use some help...

Re: Tuition Remission Not Recognized?

Hal_Al — Tue, 23 Mar 2021 14:10:56 GMT

Simple answer: just remove the tuition amount.

How was the tuition remission reported to you? 1098-T? 1099? W-2?

Usually it is not documented on any IRS form. In that case, you do not even enter it in TurboTax. As you said, it's tax free.

Re: Tuition Remission Not Recognized?

Sebros — Tue, 23 Mar 2021 14:20:03 GMT

The tuition and tuition remission was reported to me by a 1098-T. The 1098-T lists the full tuition amount that was charged in Part 1, while Part 2 lists Tuition/Fee Remissions.

Re: Tuition Remission Not Recognized?

Hal_Al — Tue, 23 Mar 2021 14:40:44 GMT

"The 1098-T lists the full tuition amount that was charged in Part 1, while Part 2 lists Tuition/Fee Remissions".

Box 2 is usually blank. There is nowhere in TurboTax to enter something from box 2. What's in box 5?

Does box 1 include the tuition remission amount? Does Box 5 include the tuition remission amount? If so, the school is treating the remission as scholarship. And you should too.

If, on the other hand, if box 1 includes the tuition remission amount, box 5 doesn't and the amount is shown in box 2; then you should reduce the box 1 amount by the amount in box 2, before entering. If that makes the box 1 amount zero and box 5 is also zero, just don't enter the 1098-T. It is only an informational document and there is no requirement that it be reported on your tax return.

Re: Tuition Remission Not Recognized?

Sebros — Tue, 23 Mar 2021 15:19:29 GMT

Sorry, it's a bit confusing. In the 1098-T I received, there was a box that said part 1. This amount was the tuition the school charged and was placed in box 1 when I submitted it to Turbotax. Meanwhile, the box on the 1098-T that said part 2 was filled out in box 5 on Turbotax. However, on the 1098-T, it clearly says that it is Tuition Remission.

I feel weird sharing exact amounts on a public forum like this, but maybe an image with the redacted amounts will make sense.

Does this make more sense?

Normally I wouldn't report the 1098-T...but I did get a fellowship that does need to be taxed.

Re: Tuition Remission Not Recognized?

Hal_Al — Tue, 23 Mar 2021 15:45:38 GMT

That's not a 1098-T. It may some kinda substitute 1098-T the school has decided to use.

If box 1 includes the tuition remission amount and Box 5 include the tuition remission amount, they offset each other and the only "scholarship" being taxed is the difference between box 1 and box 5 and that's normal.

Re: Tuition Remission Not Recognized?

Sebros — Tue, 23 Mar 2021 15:54:14 GMT

Well that is weird. My school was calling it a 1098-T. I'll just do as you said and subtract the amounts. I think my brain might melt otherwise.