Turbo tax asks if any of the financial aid was included on a W2 as taxable income on his taxes- it is part of my taxable income on my W2, do I say yes or no

[bajscott]

the question turbo tax has asked is...
 "Was Any of (my sons name) Financial Aid Already Included in Income?
Tell us if any of the $xxxx in Box 5 of (my son's) 1098-T includes amounts already reported as income on (my son's) tax return.
I do have a taxable benefit from my employer of tuition assistance for my son and it shows up as income on my W2- so it is not going to show on his taxes but will on mine.....so I am confused by this question and how to answer it....

[Carl]

YOu will answer it no. I assume the employer provided assistance you receive from your employer for your son's education, is included in box 1 of your W-2, and that not one penny of that amount is reported in box 5 of your son's 1098-T.

[bajscott]

Yes the employer provided assistance is included in box 1 of my W2. Unfortunately the university also included this amount in box 5 of the 1098T. I called them to confirm what they included in the amount in box 5.   Can I edit the info from box 5 on the 1098T to deduct that taxable amount that is included on box 1 of my w2? or is this not allowed? or likely to cause a problem.  this makes the difference between my earning the educational tax credits or not!

[Carl]

Don't change anything on the 1098-T. Instead indicate that some of what's in box 5 is included on the W-2. I know the program says "the student's" W-2. But the program's wording is misleading. If any of the amount in box 5 is reported on a W-2 that's being reported on the same tax return as that 1098-T is, then you answer the question "YES".