1098-T

[AhmednLoura]

So I'm 22 and this year was my first time filing taxes on my own normally my father did them, I had a 1098-T form for the year of 2020 I was supposed to file and my tax preparer said it was ok to leave out and IRS wouldn'tworry about it since it was a small amount, SO in Box 1 a payment recieved in the amount of $270.00 was made by me and then in box 5 a scholarships/grants of $453, was she correct to tell me not to file it, is there a certain reason why, since it is below a taxable income of $650 or will I now get penalized for it?

[ColeenD3]

No, unless there is more information, your scholarship was more that what you paid so you would not get any benefit.

[AhmednLoura]

So would I have to get this form filed and amend my taxes I really don’t know what to do? 

[ThomasM125]

I would suggest you contact your school and get the form 1098-T. Then, complete an amended return in TurboTax (you will see an option when you log into TurboTax. ) If you have more scholarship income than educational expenses, you may have taxable income that could result in a tax due. Otherwise, you may have a refund. If your tax does not change, then you don't need to file the amended return.

[AhmednLoura]

Ok so I already have the form and it’s only one form for year of 2020 in the amount of $453 in box 5. My preparer for taxes said I didn’t need to file and I did just that since it was my first time + it’s below a taxable income technically so is that 453 amount taxable if so how much would I have been taxed from it? How much is it to amend taxes it’s just very stressful and would I have to return the full amount of my return I’m very confused 

[AhmednLoura]

Also what do you mean if your tax doesn’t change, I don’t need to file a return. 

[DawnC]

You don't need to file the amendment unless there is a net change in the amount of your refund or tax owed.     Start an amendment in TurboTax and enter the 1098-T.   And if there is no change in the amount of your refund, then cancel the amendment.   You only have to file the amendment if the amount you were refunded changes.   

[Hal_Al]

There are three answers to your question.

1. Technically, your tax preparer was wrong, those amounts probably should have been filed.

2. From a practical standpoint, he was right, the amount is so small it is unlikely to make a difference and you should forget about it.  It is not mandatory that a 1098-T be filed. You will not be hearing from the IRS, because the amount is small and they do not  authenticate  numbers on a 1098-T, even big numbers. 

3. The true answer depends on more details.  Such as:

Why are you not you parent's dependent this year?

You say you actually paid $270, was that in addition to what the $453 paid for?

What other income did you have? 

[AhmednLoura]

I paid 270 because I received a bill for that and paid it I didn’t question it and the 453 is box 5 I’m not a dependent this year because I got married and moved out. 

[DawnC]

What do you mean you paid $270, who sent you a bill, the IRS?    Did you file a tax return in 2020 with your spouse?   If so, enter the 1098-T on an amended return to verify it does not change anything.  If the final numbers change, file the amendment.   If not, cancel the amendment.  

[AhmednLoura]

270 I paid the school for a class 453 was in box 5 for a scholarship amount I received from them. 

I got married last year in Nov., last year I was a dependent..this year I filed as an independent as well as jointly. 

[DawnC]

If the 1098-T is for 2020, it belongs on your 2020 return that you filed jointly with your spouse.  If so, start the amendment and add the form.  If there is no change to the bottom line, cancel it.   If there is a difference in the amount of your joint refund, file the amendment.  

If the 1098-T is for 2019, it belongs on your parents return assuming they claimed you on their 2019 tax return.   

[AhmednLoura]

If this makes it any easier. 

so just to clarify...

1. I did taxes through H&R Block can I still try and amend here to see if there will be any net change?

2. If there is no change I shouldn’t have to worry about amending and I can cancel?

3. How can I get started on amending here? Do I need to return my entire tax refund and the whole amount? Like withdrawing it from my bank. 
4. my tax preparer said I don’t need to file since it is such a low amount and below the taxable income. Thank you for any help . I hope this pictures makes it easier. 

[AhmednLoura]

5. Lastly would I have to pay to amend if I do need to amend and can I do it here even though I filed through H&R Block

[DawnC]

The amount is small and it may not make a difference but as Hal_Al stated above, it depends on other factors.   How much income was on your jointly filed federal return?    

1 - You can do the amendment on TurboTax, but it would require a lot of re-entry.  If you used Block, maybe you can access your return online through them and do the same thing we are suggesting here?   You would basically need to create a tax return on TurboTax tax exactly as you originally filed it through Block.   Then file it (and probably pay for it) via mail (but not really mail it) and then you would have a tax file that could be amended in TurboTax.  

2 - Yes, if no change, you can ignore and cancel it - which I am guessing you could do with the other software as well, but I don't know anything about that.

3 - See #1 - but no matter what you do, you do not need to return any refund you already were sent.   If you owe something from the amendment, you can pay it then.  

4 -  The amount does not matter, you can be charged interest on any amount of taxable income no matter how small it is.   

5 -  Amendments are free - but you may be required to pay to ''file'' the original return on TurboTax in order to get a return that is amendable.   If you qualify for the Free Edition, it may not cost you anything.   

Since you have already filed, you are not risking a non-filing penalty if you do nothing.   Another option to ease your mind is to create the account in TurboTax and re-enter the tax info you filed already and also include the 1098-T.   If the refund amount is the same, sign out of TurboTax (don't pay or file anything) and keep the 1098-T with your tax records.