topic Form 1098T - Block 1 in Education

Form 1098T - Block 1

TAD1965 — Tue, 18 Feb 2025 21:45:08 GMT

My son has been "independent" since 2022, but I help him complete his tax returns. He graduated with a Master's Degree in Spring 2024. His senior year and both years of graduate studies were fully paid by a third party as part of a very generous scholarship program. All funds were sent directly to the university for all three years.

He received the Form 1098T for 2024 and the difference between Blocks 1 and 5 is about $7K, which would imply that my son would have received $7K in income. We have spoken to the university, and they stated that since their Spring 2024 bill was issued in late 2023, Block 1 was significantly lower. This does NOT make sense to me since Block 1 refers to "PAYMENTS". The scholarship program did not make payment for Spring 2024 until 2024, but talking to the university is like talking to a "rock". Again, my son did not receive any of the payment made to the university, so he should not be subject to income on the difference. Any thoughts?

Re: Form 1098T - Block 1

AmyC — Tue, 18 Feb 2025 22:00:54 GMT

Since you have the bursar account records to back you up- follow these steps:

Select Federal
Select Deductions & Credits
Scroll down to Education
Select the Show more- if necessary
Select Revisit to the right of Expenses and Scholarships (Form 1098-T)
On the Your Education Expenses Summary page, select Edit to the right of the appropriate student’s name
On the Here’s X’s Education Summary page, select Edit to the right of Other Education Expenses
Select yes to enter expenses.

Re: Form 1098T - Block 1

Hal_Al — Tue, 18 Feb 2025 23:40:54 GMT

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 2024 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.

Re: Form 1098T - Block 1

TAD1965 — Wed, 19 Feb 2025 13:20:30 GMT

Thanks to all who responded to my initial post! It is greatly appreciated!!

TAD1965