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natyclementi
Level 2

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

 
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ThomasM125
Employee Tax Expert

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

You should enter the 1098-T as it is listed. The $100 stipend and $100 health insurance payment represent taxable income. When you enter the form 1098-T it will be processed as such on your tax return.

 

You would enter the $20 withholding as you mentioned so you get credit for it on your tax return.

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7 Replies
KarenJ2
Expert Alumni

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

What is the 1042-S for?  What are the codes listed.  Is it for tuition and expenses?  We need more information to assist you.

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natyclementi
Level 2

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

@KarenJ2 

The 1042-S is for a stipend. 
Box 1 Income code: 16
Box 3b Tax rate: 14
Box 4a Exemption code 16
This form  contains money assigned as a stipend, and the taxes that were  withheld. 

On the other hand, the form 1098T includes the money of the stipend after taxes where deducted, plus tuition benefits, plus a health insurance benefit (partial payment from the school). 

LinaJ2020
Expert Alumni

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

You would enter the information under the Education section. If your grants or stipends used to pay for the tuition is greater than the tuition amount, the difference would be treated as a taxable event as wages. Here are the steps:

 

  • Sign in to your account, select Pick up where you left off
  • At the right upper corner, in the search box, type in "1098t" and Enter
  • Select Jump to 1098t
  • On the screen, Now Let's gather XYZ's Additional Education Expenses
  • Follow prompts
  • Next screen, Your Education Expenses Summary, select Edit
  • Next screen Here's Your Education Summary, under Tuition, select Edit to enter tuition information

For withholding, follow here:

  • At the right upper corner, in the search box, type in estimates paid and Enter
  • Select Jump to estimates paid
  • On the screen, Estimates and Other Income Taxes Paid, scroll down to select the section and enter information

@natyclementi

 

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natyclementi
Level 2

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

@LinaJ2020   I'm confused by your response since this doesn't clarify how to separate the money that shows in both forms. 
I do know that " the difference would be treated as a taxable event as wages" on the 1098T. But I'm going to try to explain again the problem with some random numbers to make it more clear.
On my 1098T  I have:
Box 1 "$100"
Box 5 "$300"
On Box 5 the breakdown would be
- 100 that are from box 1
- 100 that are from a stipend. This 100 are a result of a stipend that had taxes deducted. (**)
- 100 a health insurance benefit that 

 

Now on my 1042S it shows:
Box 1 Income code: 16
Box 2 gross income: 120 (which is the amount that shows on 1098T see (**) plus taxes that withheld)
Box 4a Exemption code: 16
Box 7a Federal Tax withheld: 20 

Your answer would be valid if the stipend part of box 5 in 1098T was the full amount of what shows in Box 2 of 1042S but unfortunately it is not. 
Would it be ok if (following the example numbers I show)
- Modify the entry of the 1098T Box 5 by subtracting the stipend paid with tax withheld. (Is this ok?)
- Enter what is in box 2 of 1042S as a separate scholarship in the "Did you received other scholarship ? part"
- And report the money withheld on the 1042 S Box 10 on  "Federal Withholdings" box of the "Other Income Taxes Paid in 2018."
 


 

ThomasM125
Employee Tax Expert

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

You should enter the 1098-T as it is listed. The $100 stipend and $100 health insurance payment represent taxable income. When you enter the form 1098-T it will be processed as such on your tax return.

 

You would enter the $20 withholding as you mentioned so you get credit for it on your tax return.

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natyclementi
Level 2

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

One more question @ThomasM125 When you say "The $100 stipend and $100 health insurance payment represent taxable income." will I be taxed again on the $100 for the stipend, even though this was taxed already?
If so, do you mean I would recover the money by reporting the $20 as ""Other Income Taxes Paid in 2019."

ThomasM125
Employee Tax Expert

I'm a RA and received 1098T and 1042S with tax withheld. The amount that shows on 1098T box 5 is bigger than the amount shown on 1042S. How do I file this?

Yes, when you report the $20, that will get added to the taxes you paid in, so you'll get taxed on the income but the tax you paid in will cancel it out.

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