F1 student, resident for rax purposes. 1098 T vs 1042 S

[RSOAL]

Hello,

I am an international student in USA under F1 visa. I am from Sri Lanka. Since I have been in USA for more than 5 years I am considered a resident for tax purposes.

I am confused on how to report my 1098 T and 1042 S.
1042 S and 1098 T both have kind of the similar information.
1042 S has what I received as a scholarship and I believe (see below) 1098 has that amount minus fees for the university.

But in 1042 S, it clearly says what was the amount I payed for federal and stat taxes.

How do I report these incomes and taxes, so I don.t get taxed twice?

Relevant numbers:
1098 - T
1. Payments: 238.50
2. Scholarship/Grants: 2814.00

1042 - S
1. Income Code 16
2. Gross Income 2576
7a Federal tax withheld 361
10 Total withholding credit 361
17a State tax withheld 109

Note:
I believe that what 1042 - S have (2576 = 2814-2398) is the Scholarship amount in 1098 T (2814) minus the Payments in 1098 T (238.5)

Thank you so much in advance for helping

[investng engineer]

I would update your payroll office with your tax residency status change. You shouldn't receive 1042-S any more after you have become a resident for tax purpose.

[RSOAL]

Thank you for your reply. 

I will email the payroll right away. 

But for this tax return do you have any advice on how I should file it? 

[investng engineer]

I would ask for the right form and come back to do the tax return later.

[LinaJ2020 · Accepted solution]

You will treat Form 1042- S as receiving a scholarship or fellowship to offset your qualified education expenses if there are any.  You will enter the amount in box 5 on  your Form 1098-T.  If you have paid any qualified tuition expenses out of pocket, you would enter information by following the steps below.  As IRS receives a copy of your Form 1042-S, you can e-file your tax return.  You do not need to submit your Form 1042-S separately.

In TurboTax Online,

• After sign into your account and select Pick up where you left off
• At the right upper corner, in the search box, type in 1098t and Enter 
• Select Jump to form 1098T 
• Follow prompts

If you have paid in any tax withholdings, enter info so you will not be taxed twice.  Here are the steps:

• At the right upper corner, in the search box, type in estimates paid and Enter
• Select Jump to estimates paid
• On the screen, Estimates and Other Income Taxes Paid, select the right section to enter information  

If your scholarship amount exceeds your tuition and other qualified expenses like books and supplies, the difference will be taxable as wages  (SCH) on line 1 of your Form 1040.

@investng engineer

[RSOAL]

I contacted my payroll and they confirmed that while I am considered a resident for tax purposes, I will still get a 1042 S for any additional grants/scholarships because I am a forigen passport holder

[RSOAL]

Thanks. Someone who knows what they are talking about.

Exactly what the college tax clinic told me.