College Student 1098T Form

[kamarch]

The 2022 1098-T form has $2,206.00 in Box 1 which is the amount the College Billed rather than the payment received for $2,383.59.  Difference = $177.57 

Box 5 lists the $1,191.59 Foundation Scholarship.  The College disbursed the Scholarship to pay for the Fall semester Tuition & Fees at $1,014.00.  Difference = $177.57

Questions:

1. What Schedule or Form is needed to report additional expenses: books, school supplies 

& equipment purchased (computer & laptop) ~ $2,031.00

2.  The CCCCD Foundation Scholarship was used to pay for the Fall Semester Tuition.  It was non-taxable.  Since it was entered in Box 5, does that mean it needs to be included as income?

[MelodyB]

Hi there!

If you have additional expenses when  you are in the Education Section within TurboTax once you have filled in the information for the 1098-T the next section to come up will ask you if you have any additional expenses and that is where you will enter books or any additional fees, etc.  If the amount in box 5 is more than the amount in box 1 this amount is usually the amount that will get added as income.  However, it is a little more complicated when the tuition paid is covering a semester other than the current one.

[Katherine S 63]

Great question!!

You will enter your 1098 T in the Deductions and Credits section of Turbo Tax. Enter the form and then it will also ask you for any other expenses.  The scholarship is not taxable.  Your expenses exceeded your scholarship so you are good on that end.

If you are under 24, your parents would claim you and enter that form with their return.  If you are not, then you could report this form on your return.

---Tests To Be a Qualifying Child---
(Must pass ALL of these tests)

NOTE: If a child passes all of these tests he must say “yes” on his/her own tax return (if he/she files one) that another taxpayer CAN claim him/her as a dependent even if they DO NOT claim him/her)

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother,stepsister, or a descendant of any of them.

2. The child must be (a) under age 19 at the end of 2018, (b) under age 24 at the end of 2022 and a full-time student* for any part of 5 months of 2022, or (c) any age if permanently and totally disabled and must be younger than you (or your spouse if filing jointly).

3. The child must have lived with you for more than half of the year (There are exceptions for temporary absences such as school, illness, business, vacation, military service).

4. The child must not have provided more than half of his or her own support for the year.
See Worksheet 3-1. Worksheet for Determining Support
https://www.irs.gov/publications/p17#en_US_2017_publink1000171012

5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.

6. The child is not filing a joint return.

7. The child must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico

 *A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance during some part of each of any 5 calendar months of the year.

See IRS Publication 17 for more information.

https://www.irs.gov/publications/p17#en_US_2017_publink1000170876

I sure hope this has helped.

If you reply back, I will try to keep an eye open to assist further.

Please give me a thumbs up if this was helpful.

Katie S.

[AR_CPA2]

Form 8863 is used to claim an Education Credit.  In Turbo Tax under the Deductions & Credits tab, under the Education section, Expenses and Scholarships (Form 1098-T) section, as you go through the screens, you will be able to enter your additional expenses for Books and School Supplies.

Once you enter the info from Form 1098-T, the software will calculate your Out of Pocket expenses (Box 1 plus additional expenses minus the Box 5 scholarships) and calculate the Education Credit accordingly.  

If you think your Form 1098-T is not accurate, please contact your education institution and get a corrected form. 

Hope this helps!

[kamarch]

Thanks, Katherine.  I'm actually working on my 21 yr. old grandson's taxes.  He files separately as a single person & he's not listed as a dependent on his parents tax forms.