Tax Year Prior to 2020: Are you required to file your 1098-T form?

[mainmenu1mill]

I am a College student, and I'm curious if i am required to file my 1098-T.
Can you file taxes without it?

[Patrice]

No, you don't have to report your 1098-T, not unless you want to claim an education credit.  However if your grant/scholarship amount (box 5) is more than your tuition (box 1/box 2) you may want to report it because excess scholarship money may be treated as taxable income on your return.

When you enter your 1098-T, we use this and other information to determine the educational benefits you may be eligible for on your tax return, such as the American Opportunity Credit, the Lifetime Learning Credit and the Tuition and Fees Deduction.

[emantekle2]

How do you qualify for the American Opportunity Credit or lifetime learning credit? And how do you know if you have received them before (because it asks). I am 21 undergrad student, and its asking me if someone else can claim as a dependent. Right now, I am independent. My parents will not claim me. Also, after I put the 1098-t, $600 of the federal was taken away do you know why? Many thanks

[jacob_haynesie]

I don't understand the part that says, "you may want to report it" My box 5 is more than box 1/box 2, I entered my information and it reduced my tax return almost $800. So I may want to report it because it "may be treated as taxable income"? If I don't have to report it, and reporting it lowers my projected tax return, then why should I report it?

[jacob_haynesie]

Secondly, if Box 5 being more than box 1 is what causes it to be taxable income then why tell people it does not have to be reported?

[16koganc]

turbo are you not going to reply, I have the same question. My 1098t made me go from $70 return to $600 taxes owed.

[16koganc]

I would add to double check before filing with another tax filer like H&R block. It resolved the problem I was seeing here.

[apriljackson430]

I am having the same issue. After I reported the information from boxes 5 and 2 on my 1098-T, I went from having a refund to owing a lot of money. I'm going to check out H&R block.

[koganataliaa]

I'd suggest going into person too. I went into person, with H&R block, and they're able to play with the qualifications to give you the most money back.

Technically if grants/scholarships are more than tuition and fees only, that amount is taxable, because it counts as income. Even though we get grants and scholarships for living expenses that our (and parent's) income don't make up for, it counts as income which is taxable.

However, if you claim American credit opportunity, it should fix this.

Online is a generator response. While someone in person can play around with the numbers and see if you can qualify elsewhere to give you the most amount back.

[koganataliaa]

I am the same person as 16koganc (different ITUIT account).

[apriljackson430]

Ok thank you for the response.

[ts_cossey]

I don't like the answer that was initially provided to you.  If you have more money from scholarship or grants (box 5) than the amount payed/billed (box 1 or 2) to you then YES you have to report it.  It is considered income, and is therefore taxable. According to the IRS if the income is over $650 then it is considered taxable income, and it MUST be reported.  As a tax preparer I have seen the IRS come after clients for not filing a 1098-T when they had taxable income on it.
The only time you don't have to file it is if billable/amount paid (box 1 or 2) is more than your scholarship or grant money (box 5).  This is true because then you qualify for an education credit/deduction, and it's up to you to know whether or not you can use the credits/deductions you qualify for.

[apriljackson430]

Thanks for clarifying.

[xyosukex-xhanamu]

What if my box 2 is empty because it was included in the amount for my 2017 1098-T form? Do I still need to report the grants?

[feasel]

No, you don't have to file a 1098-T form. Keep in mind that the form is for a DEDUCTION. Iff the law has not changed, you are not required to take a deduction.  I have also read the IRS 1098-T instructions and most of  it is geared to the University-related filing requirements for the students...

The only reason that Universities send out the form, to the students. is to ensure that the $ (numbers), that the University sends to the government, align with your deductions (should you wish to take them).

Please note the tax categories (buckets and associated calculations) on the 1098-t are such that grants and/or scholarships offset your payments. This means a Merit Scholar or a Student Athlete can see an increase in taxes if you submit the form.

For an average family , who are paying a large tuition bill, this deduction can be a blessing and for some it can be a curse. You can know when to holdem and when to foldem....