1098-T Box 7 Discrepancy: Is there an error in Turbotax or with IRS Form 8863 for Education Credits ?

[crash345u]

Turbotax asks if Box 7 was checked on the 2019 1098-T which means that Box 1 includes amounts for an academic period beginning January— March 2020.

I answered "YES" but on Form 8863 Education Credits line 22  the IRS form generated by TT prints "Did the student receive Form 1098-T from this institution for 2018 with box 7 checked?".  Turbotax checked the "NO" Box on line 22.  

Was the 8863 really suppose to say 2019 on line 22 and should Turbotax have checked "YES"?

[JosephF8]

It is actually two different questions. The question about 2018 will come up if you entered the following when entering the 1098-T

• Check the box asking if attended the same school in 2018 (comes after entering the address)
• Say yes when asked if you received a 1098-T from the school in 2018
• Answer yes to the question about an amount in Box 2
• It will then ask if box 7 was checked

[Carl]

There is no problem here. One quetsion pertains to your 2019 (twenty nineteen) 1098-T and the other question pertains to your 2018 (twenty eighteen) 1098-T.

[Jerry25]

My 1098-T from 2018 has nothing in box 2.  So when the system asked me if Box 2 contains anything, I answer No.  However, Box 7 is checked.  Now I have to answer Yes in order to answer the question about box 7.  

[DMarkM1]

Yes, you are correct. If box 7 was checked on your 2018 form 1098-T you should answer "Yes" to the box 2 question in order to access the box 7 question for the 2018 form.  

[brianbd1989]

I have the reverse problem. I did not mark that there was any amount in box 2 or in question 7. Yet turbo tax marked "Yes" to the question "Did the student receive Form 1098-T from this institution for 2020 with box
7 checked?" The answer is No. Will this be a problem for me from the IRS?

[brianbd1989]

And with this being marked "Yes" when the answer is "No", does that effect the amount of my return this year? Thanks for any assistance. 

[RobertB4444]

Did you answer "Yes" when you did your 2020 return?  If so you may need to go back and amend that return in order to make sure everything is correct.  

[brianbd1989]

No I marked No. Unfortunately turbo tax messed up and one of the school columns has Yes marked. We even went back through process and saw that yes wasn't checked. Someone else said that that doesn't effect $$$, just for my guidance in regards to how much is in box 1 for tuition amount on 1098-T? That true?

[KrisD15]

That is true since you are entering what was paid in 2021. The computation and credit amount won't be changed. 

I only see the question about Box 7 for the prior year on Form  8863. I don't see that question for the 2021 1098-T on Form 8863. 

[Castrofate]

I have a similar problem.

I learned from above to say yes to Box 2 in order to get to a Box 7 Yes on previous year.

Now 8863 page 2 has the right checkbox for last years form BUT continues to check NO for "Did you receive a 1098-T for 2022 (this year)"

I have clearly entered info about a 1098-T  and went through questions a few times

How do I get it to check YES

[HopeS]

If you have gone through the interview and cannot correct your Form 1098T entries, delete the Form and re-enter the Form again.

Here are the steps to delete the Form 1098-T:

1. Open your return in TurboTax. (To do this, sign in to TurboTax, and select the Take me to my return button.)
2. In the left sidebar, select Tax Tools> Tools.
3. In the pop-up window Tool Center, choose Delete a form.
4. Select Delete next to the Form 1098-T  and follow the onscreen instructions.

You can also return to the Education section of of the program to delete the form:

1. Go to the search bar in the top right corner

2. Enter "1098-T"

3. Select "Jump to 1098-T"

4. Select Continue to enter education expenses, and at the "Your Education Expenses Summary" page, select "Edit"

5. On the next page titled "Here's Your Education Summary", select "Delete" next to "Tuition"

In addition, it is not clear that you are referencing the correct boxes on Form 1098T. For example Box 2 on the Form is typically blank. See screenshot below and box 7

@Castrofate 

[Castrofate]

Correct. I do not want to say yes to Box 2 but must in order to get to a Box 7 question.

I will delete the form and try again.

Is it a problem saying yes to Box 2 when it is blank? turbotax forces this procedure.

[BrittanyS]

No, selecting box two will not affect the data entry.  Box 2 is a discontinued box on the 1098-T but is occasionally used.  Box 7 is used if the amount in Box 1 or 2 includes expenses for an academic term that begins in the first three months following the year covered by the 1098-T.  If there is no amount in box 2, but the amount in box 1 includes expenses for an academic term that begins in the first three months following the year covered by the 1098-T, then you can select Box 2 in the interview section.  

For more information, see the link below:

Guide to a 1098-T

@Castrofate