Form 1040 Schedule 1 being generated with no income to report due to 1098-T

[funwithtaxes]

Tried working through this with Intuit phone support, but to no avail.  Thought I would give this a try.  Hopefully someone from Inuit Tech Support will see this and provide a resolution.

TurboTax is generating a Form 1040 Schedule 1 due to a 1098-T even though there is NO additional income to report.  Seems like TurboTax should not be including Schedule 1 in the forms to be filed since there is no income to report on Schedule 1.  Is this a bug?

Here is the scenario:

Using 2022 TurboTax Premier desktop (with latest updates installed) on a Windows 10 PC.

Working on tax return for my college grad which I plan to file electronically. 

Received a 2022 1098-T with $5,500 in Box 5 (Scholarships) and Box 8 (At least half-time student) checked.  No amounts in any other boxes including Box 1 (payments).  Payments for the final semester (Spring 2022) were charged and paid for in Dec 2021 (and appeared on the 2021 1098-T), but scholarship was not posted until Jan 2022 so it appeared on 2022 1098-T.

Entered the 2022 1098-T here: Federal Taxes > Deductions & Credits > Education > Expenses and Scholarships (Form 1098-T).

Then went through the Scholarships/Grants workflow and on the “Did Your Aid Include Amounts Not Awarded for 2022 Expenses?” screen, I clicked YES and entered $5,500.  This prevents the scholarship from being included as income.

The result of this was TurboTax generating a Form 1040 Schedule 1 (Additional Income and Adjustments to Income) with a 0 on line 8r, a 0 on line 9, and a 0 on line 10.

Tried deleting the Schedule 1, but TurboTax just immediately recreates it.

My college grad has NO additional income and NO adjustments to income, so why is TurboTax generating a Schedule 1 as a form required for filing the tax return?

Scenario 2:

Just for the heck of it, I started over.  I deleted the 1098-T which also deleted the Schedule 1.  I added the 1098-T back in, but this time I put $5,500 in box 1 (Payments) and $5,500 in box 5 (Scholarships).  This prevents the scholarship from being included as income.  I did not go through the Scholarships/Grants workflow.

The result of this was the same as the first scenario.  TurboTax generated a Form 1040 Schedule 1 (Additional Income and Adjustments to Income) with a 0 on line 8r, a 0 on line 9, and a 0 on line 10.

Tried deleting the Schedule 1, but TurboTax just immediately recreates it.

Again, my college grad has NO additional income and NO adjustments to income, so why is TurboTax generating a Schedule 1 as a form required for filing the tax return?

[KrisD15]

Schedule 1 reports scholarship income. 

Although the 1098-T is NOT generating Scholarship income, the program flows to Schedule 1. 

The Software needs a place to go with the computation. The Software does not know if you will or won't be adding any other information relating to the Education Section, such as a 1099-Q. 

Form 1098-T is informational. It provides numbers. 

If Schedule 1 annoys you, simply don't enter the 1098-T. 

Keep the 1098-T with the tax file. Make sure you did not use excess expenses (expenses this scholarship covered) for a credit the previous year. 

[funwithtaxes]

Thank you very much for the reply. 

While I completely agree that I could simply not input the 1098-T, I should not have to do this. 

TurboTax should not be generating a form required for filing with NO amounts on it, because there is no reason to file a blank form with a few zeros on it.  

Additionally, I should be able to enter the 2022 1098-T data into TurboTax so that I have a record of the details on the Student Worksheet showing the 2022 scholarship amount override because it applies to the 2022 expenses shown on the 2021 1098-T.

Two additional reasons why TurboTax should not be generating the Schedule 1:

I have gone through the entire workflow and gotten to the point where it is ready to file and one of the questions before getting to that point that TurboTax asks is whether you have entered all of your documents.  At this point TurboTax knows that I will not be entering any other information in the Education Section such as a 1099-Q.  So, at this point TurboTax should not be (but it is) including the Schedule 1 for filing since there is no additional income to report.

I had to deal with the exact same situation previously in 2019 and in 2019 TurboTax did not generate the Schedule 1 because there was no additional income to report.  And yes, the Schedule 1 was a form in use at that time in 2019.  So, what changed in the TurboTax logic between 2019 and 2022?  The software worked correctly in 2019, but it does not appear to be working correctly in 2022.

[RobertB4444]

The schedule 1 is generated by the system because the 1098-T creates it.  You've figured this out, and you recognize that it has no incorrect information on it.  It will cause no interference with filing and because the form has all zeros it won't even be reviewed by the IRS system.  There is no way to file the return without creating that form if you include the 1098-T.

@funwithtaxes