topic 1098-T form problem in Education

1098-T form problem

Amaranta — Fri, 30 Apr 2021 15:27:41 GMT

Hello! I'm an international master's student filing as a resident due to my time in the country. I get my tuition fully covered through a graduate assistantship. I received some money from my university through their COVID relief fund that came from donations, not the CARES act. Because of this, box 5 on my 1098-T is about $1300 higher than box 1. When I input this form on the system, my tax return of around $500 turns into me having to pay $3000 back in taxes. I'm confused by how I'd have to pay so much more for money I received as COVID relief, even more than I actually got. Any advice on how to fix this problem? When I don't enter this form I get a much higher tax return. Thanks!

Re: 1098-T form problem

AmyC — Sat, 01 May 2021 00:09:38 GMT

Box 5 minus box 1 is $1300 of income added to your return. That should not cause a big jump like that. Take a look at your tax forms before and after the 1098T and compare them. There could be some credits you are losing with that bump in income. See How do I preview my TurboTax Online return before filing?

Re: 1098-T form problem

Amaranta — Sat, 01 May 2021 17:45:18 GMT

Thank you! That did help and gave me a return instead of having to pay more taxes. The return isn't as high as it was before I entered the 1098-T form, though. Those $1300 that are higher on box 5 are COVID relief funds that came from donations to my university. Is there a way to signal that in the system in case it gives me some additional tax credit?

Re: 1098-T form problem

AmyC — Thu, 06 May 2021 03:21:48 GMT

Yes, you can allocate that money elsewhere. Please look at another of my answers for help You may be able to get the AOTC and that would be great.