Do I need to file Form 1098-T?

Forum|Forum|5 years ago
February 11, 2021
7 replies
65 views

Last year, I got a 1098-T and had no income. When my parents brought my 1098-T to their tax preparer, they didn't file anything for federal or NY. My Box 5 Scholarships and Grants were more than my Box 1 Qualified Expenses by about $4k.

This year, I'm required to file a federal return because I incorrectly contributed to my Roth when I had no earned income and will need to pay the 10% penalty on my earnings. Am I required to also file my 1098-T? When I include my 1098-T information on TurboTax, my NY tax shoots up to $200 because my Box 1 Qualified Expenses are more than my Box 1 Qualified Expenses by approximately $6k and therefore my AGI is $6k.

Do I need to include my Form 1098-T? I've read that since my scholarships exceed my tuition expenses, then the $6k excess scholarships is taxable. And because I'm a single dependent, I will have to file a NY return because my $6k AGI is over the $3,100 threshold. But last year, my parent's tax preparer didn't file anything for NY even though I should have been considered to have a $4k AGI for my taxable scholarship.

Any help is greatly appreciated!

MarilynG

Level 15

Depends. If your parents claim you as a Dependent on their return (or are allowed to claim you), they enter your 1098-T in their return.

If not, you would enter it on your return, and yes, you would have Taxable Income if Scholarships/Grants exceeds Tuition Paid (don't forget to enter all other expenses, such as books and fees).

Click this link for detailed info on Who Enters the 1098-T.

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hchan32Author

Level 4

@MarilynG

My parents will claim me as a dependent. Would this mean that I should delete the 1098-T information on my return and have my parents include it in their return instead?

The thing is, I've looked through my parents returns and it doesn't look like their tax preparer included any of my excess scholarships in their income.

hchan32Author

Level 4

That is correct, if your parents claim you do not include the 1098-T information on your personal return.

@RayW7

Ok, thank you. I've seen threads stating that if scholarships > expenses, the excess scholarship would be taxable and the child would need to report it as income.

What is to become of this taxable portion if not included by the dependent?