How to report a qualified tuition that is not included in box 1 in the 1098-T form?

[Anonymous]

I'm a doctoral student and receiving a scholarship for my tuition and medical insurance, and I just received my 1098-T form for 2019 from my school. Although the amount of scholarship in box 5 includes the amount I received for the tuition of the Spring and the Fall semesters in 2019, the amount of qualified tuition in box 1 does not include the amount for the spring semester 2019. This is because my school sent me the bill for the Spring semester in Dec 2018, and paid with my scholarship in Jan 2019. I checked the 1098-T form for 2018 I received last year, which includes the amount of tuition for the Spring semester in 2019, with unchecked box 7. Is anyone else in the same situation? How should I report tax for 2019?

Can I just manually correct the qualified tuition in box 1 and attach a billing statement from my school to my tax return files as a proof? I understand I have to pay tax for the amount of scholarship that covered medical insurance, correct?

[KurtL1]

Because you included the Tuition of the Spring 2019 in your education credit calculation on your 2018 return. If you change the amount in box 1 to include the Spring 2019 tuition you will using the same tuition dollars paid in both 2018 and 2019.

You need to report the amounts on the 2019 Form 1098-T on your 2019 return. However, if the amount is causing you to pay additional taxes in 2019 you could do the following:

1. Amend your 2018 return to reflect the adjusted amount on the Form 1098-T.
2. Add the Spring 2019 Tuition as an other expense to calculate the adjusted expenses. Do not change the amount in box 1.
3. Mail in your return with an attached explanation of what you did and note that you amended your 2018 return and the results of the amended return.

You might discover that after you do the 2018 amendment calculation, the amount you owe on taxes on 2018 with the penalties and interest on the additional taxes owed are greater than the amount you lost on your the reported 1098-T in 2019.