topic 1098-T in Education

1098-T

ser96 — Tue, 10 Feb 2026 10:50:03 GMT

I'm a student who received a 1098-T with an amount on Line 5 only. My mom claimed me as a dependent on her taxes but did not report the 1098-T on her return. Should she have reported this on her return or is this only reported on my return? I'm unclear why this is reported as taxable income since it was a grant.

Re: 1098-T

Hal_Al — Sat, 24 Feb 2024 23:04:59 GMT

Q. Should my mom have reported the 1098-T on her return?

A. Only if you had qualifying educational expenses (tuition, fees, books and other course materials, including a required computer) for which she could claim an educational credit. She would not report the scholarship on her return.

Q. Or is the 1098-T only reported on my return?

A. The 1098-T can be reported on either or both tax returns, depending on the details.

Q. I'm unclear why this is reported as taxable income since it was a grant?

A. Scholarships and grants that exceed qualified educational expenses, is treated as income. So, if box 5 has an amount and box 1 is blank, then the entire box 5 amount is taxable, unless you enter other qualified expenses. Room & board are not qualified expenses.

Why is there nothing in box 1 of your 1098-T? Did the grant pay for tuition and the school just failed to enter it in box 1 (that is unusual)? Do you have any qualified expenses to enter?

There's a loop hole available for the parent to claim the credit, even if you are on scholarship.

Re: 1098-T

DianeW777 — Sat, 24 Feb 2024 23:08:12 GMT

It appears there is no tuition payments received in 2023, however there was scholarship funds in Box 5. Report this Form 1098-T on your tax return to see if you need to report income from scholarships because it was not used for tuition, books or supplies for classes.

Where to report Form 1098-T?

Review details provided by Hal_Al and enter more questions if you need to here and we will help.