1098-T

Forum|Forum|5 years ago
April 17, 2021
2 replies
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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

Level 15

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

AhmednLouraAuthor

Level 2

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

DawnC

Level 15

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

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.

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Hal_Al

Level 15

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?

AhmednLouraAuthor

Level 2

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

Level 15

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.

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