How do I adjust scholarship amount on 1098-T

[sharonandsean]

The school included 2025 scholarship dollars on the 2024 1098-T.

When I searched for a way to fix this, posts here said to go to the screen that asks "Did Aid Include Amounts not Awarded for 2023 Year?'."

How do I get to that screen?  The posts did not say no is TT steering me to that important screen when editing the 1098-T information. It appears this is a very common problem with 1098-T.

[BrittanyS]

You will mark "Box 1 includes amounts for academic period beginning January - March 2025 on the 1098-T entry screen.  To do this in TurboTax, follow these steps:

1. Sign into TurboTax
2. Click Deductions and Credits
3. Click Edit next to 1098-T
4. Choose Edit next to the 1098-T you want to change
5. Scroll down on the "Type in the info from 1098-T screen" until you see "Box 1 includes amounts for academic period beginning January - March"  and mark the box (See screenshot below)j

[QRFMTOA]

When I did just that, TurboTax Deluxe Desktop never asked me about splitting the amounts.

Should it have?

Q

[QRFMTOA]

I think the answer to my question is "no". Apparently, checking Box 7 on the 1098-T has no material affect on the TT interview at all.

Is that right?

Thanks!

Q

[JotikaT2]

That's correct.  You would need to enter the adjustments on a later screen. 

To verify your input, please follow these steps to get back to the 1098-T input screens.

Once you get back to the input screens, you would need to make the applicable adjustment under the section titled Scholarships/Grants (for all schools) on the page titled "Here's your Education Summary."  Select edit to the right of Scholarships/Grants.

You will then be taken to a page titled "Did xx Receive a Scholarship or Grant in 2024?"  Select Yes.  

This will pull up a box where you can edit the scholarship amount that should be allocated to the 2024 tuition year even though it was received in 2025.  

In 2025, you may have part of that scholarship amount listed on your 2025 Form 1098-T.  If you do, you will need to manually adjust it so it's not included on your 2025 tax return since it would already be reported on your 2024 tax return.

@QRFMTOA