1099-NEC Scholarship 1098-T 1099-Q

[masonparent]

For my daughter return

I am going to change the description of the -5000 to be

"scholarship already on 1098-T reported as 1099-NEC" as previous wording did not say it is already on 1098-T.

but her 1098-T box 5 only has $2425, I am going to make it to be $5000 to match. Accordingly reduce the 1098-T box 5 on my return to be $1750. After this change the bottom line tax did not change on both returns.

Do you see any issues doing it this way? Thanks again.

[Hal_Al]

Q. Do you see any issues doing it this way? 

A.  Simple answer: No. since the tax doesn't change.  

It may even be an improvement, as $5000 will go on line 8r of Schedule 1, matching the two $5000 (+ & -) entries on line 8z.  Although you were only required to report $2425, as taxable, you can report more.