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My return showed that I was owed over $1000 but after I input what I paid in tuition fees it has changed to me owing $300 in taxes. I'm confused, can someone help?

 
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3 Replies
ThomasM125
Expert Alumni

My return showed that I was owed over $1000 but after I input what I paid in tuition fees it has changed to me owing $300 in taxes. I'm confused, can someone help?

It is possible that your scholarship income, as reported in box 5 on your Form 1098-T, was more than your education expenses, as reported in box 1. When that happens, you have to pay tax on the difference, since scholarship income is taxable if it is not used to pay for education expenses.

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My return showed that I was owed over $1000 but after I input what I paid in tuition fees it has changed to me owing $300 in taxes. I'm confused, can someone help?

That's what I was wondering, however I received no scholarship amounts this year, so the amount in that box is 0. Could it be an issue since my income is coming from the same institution that I'm paying tuition fees to? 

*Side note: The tuition slip I have is a T2202

ThomasM125
Expert Alumni

My return showed that I was owed over $1000 but after I input what I paid in tuition fees it has changed to me owing $300 in taxes. I'm confused, can someone help?

No. One possibility is you originally owed $1,000 instead of getting a refund, it is possible you misunderstood the refund and tax due meter. So, when you entered the education expenses the amount you owed decreased.  I can't think of a reason adding education expenses would cause your refund to decrease.

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