1098T

[piroch]

I can't reconcile the 1098T for two children.

Child 1 - full tuition scholarship PLUS additional scholarships.  The amount in Box 1 looks correct.  Box 5 is greater than the cost of tuition.  I am assuming it is including some of his additional scholarships, but the amounts don't line up exactly.

Child 2 - similar issue.  Amount in Box 5 is greater than what she received for school and it doesn't match with the amount of outside scholarships.  

Does this sound like an error on the 1098T?  Do I just submit the 1098T as it stands and add the difference in scholarships?  So long as the full amount of scholarships is included should I be okay to submit?

Thanks for any insight.

[Vanessa A]

You can check with the school to see why the numbers don't match.  If it is incorrect, it would be best to get it fixed prior to filing your return.

  It is possible that they included some of the scholarship for the beginning part of 2022 on the 1098-T. 

If scholarships exceed tuition, this can become taxable income to your kids.  They would then need to include this income on their tax returns as excess scholarship income is considered taxable income.