1098-T question

Forum|Forum|5 years ago
February 9, 2021
1 reply
6 views

Hello!

Box5 - Box1 amount is taxable. Which means that the part of the scholarships paid is excess of tuition amount.

I thought that this difference covered Room and Board.

But to make sure that everything is right I wrote the letter to University asking to give me Room and Board spending report, and the given numbers surprised me. This invoice is $3,000 less then the difference between Box 1 and Box 5.

Now I am confused - there are only two types of payments in 1098-T - one is for tuition and another for the living in in the residence. But what to do with $3000 which I cannot relate to either one.

AmyC

Level 15

Box 5- box 1 is living expenses, misc supplies, etc. These differences can be quite large. The IRS allows you to choose how to claim the numbers, provided you can back it up. I am going to recommend you look at another of my answers for help. Eating, laundry, etc all take money and had to come form somewhere.

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StingerAlexAuthor

Level 5

Thank you!

Still kind of confused. These money will hang somewhere, to my understanding, if I summarize all expenses they have to be more or equal to Box 5, but it my case it is not like that. Doesn't it mean I have to report them on another page?

Turbotax is asking specifically about Room and Board, but I do not see where I can put these $3,000.

I do not want to violate some rules or laws.

DaveF1006

Level 15

The room and board amount is not an educational expense you can claim. However, Room and Board amounts can be used to reduce taxable income from scholarship. It could be that all your expenses may not be enough to offset the scholarship amount listed on Box 5 of your return.

When you go through the questions, it will ask you how much you paid for Room and Board as you navigate through that section. if you plan on using the $3000 amount, you would place that here. If you answer truthfully and record a lesser amount, then in all likelihood you may end up having taxable income from the excess scholarship amount. It will show up to the left of Box 1 in your Form 1040 as SCH xxxx. Your excess short fall will be $3000 - room and board. Hopefully this answers your questions but post you have additional questions.

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