topic 1098T Box 5 (Scholorships or Grants) in Education

1098T Box 5 (Scholorships or Grants)

rdigges — Mon, 23 Feb 2026 12:03:24 GMT

Hi, I recently changed jobs and had to repay my Graduate tuition. I had a couple questions:

1. I show that on my taxes as I paid that from day 1, correct? (I have fully repaid my company)

2. I received a 1098T from my College and in Box 5 it shows a $6K amount for "Scholorships or Grants" I have never received any scholorships/grants. The tuition was being paid for by my employer prior to my departure.

Not sure how I should be handling this. Thank you!

Re: 1098T Box 5 (Scholorships or Grants)

SantinoD — Mon, 20 Feb 2023 17:44:19 GMT

As long as you repaid the reimbursement in the same year you received it, you can claim those qualified school expenses as paid.

if there is an amount in Box 5 this means you received either grant money or scholarship money. If this sounds incorrect, you need to reach out to your school's financial department and get clarification on that. Tuition paid by your employer will not show in Box 5.

Re: 1098T Box 5 (Scholorships or Grants)

Hal_Al — Mon, 20 Feb 2023 19:59:54 GMT

It is common for schools to mistakenly put employer assistance in box 5 of the 1098-T.

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2022 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.