in Education
I received the 1098-T form. The value in box 5 is $15 more than the value in box 1. I received a fellowship for my studies in 2019. The payments were made directly to the school. Upon entering the details on form 1098-T in turbo tax, my total refund drastically reduced, putting me in the negatives. My understanding is that fellowships are tax-free if they are used for tuition, and so forth. I am very confused and appreciate any information.
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Stop entering in anything off the 1098-T ... for all practical purposes the amount in box 5 is equal to the box 1 amount so you don't need to enter anything on this form.
If your expenses were only $15 less than your fellowship, that 15 is taxable and shouldn't affect your taxes much. If you had expenses, ie books, software, computer, etc some of those might be legitimate expenses depending on if you were going for the American Opportunity Credit or the Lifetime Learning Credit. You might do better by claiming some of the Fellowship as Income, and listing some of the Tuition and books as expenses. Talk to a tax professional.... go to an AARP Tax-Aide site and ask the question. or use this calculator to figure out another way to reduce your taxes. Watch the 22 minute video and see how this calculator works.
https://cotaxaide.org/tools/Education%20Calculator.html
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