Do I have to file my 1098 T?

I am in graduate school on a teaching fellowship and received a 1098T from my University. I do not pay anything out of pocket for my education. I saw that the IRS has an exemption for the 1098T form for

"Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships or grants"

I believe that I fall under this category as my scholarship from my fellowship covers all of my tuition. When I do input the 1098T, my refund is cut nearly in half. If would be greatly beneficial if I did not have to file this form.
    If you have taxable scholarship/fellowship, you are required to report it as taxable income.

    If your box 5 amount includes fellowship included on a W2 then your 1098t is wrong.  That would not be taxable a second time as scholarship income.

    I suggest you look over the 1098t and try to understand if it is complete.
    Sometimes the box 1 of box 2 doesn't include all of the tuition and you need to enter additional expenses not on the 1098t.  Sometimes the box 5 amount might include something like student loans or fellowship taxable on the W2.  Then you need to adjust the entries.

    This link might help
    • Hi TurboTaxLouise,
      How do I adjust that amount already included on the W2? Do I adjust the difference on the "Other income" line of the 1040 as a negative amount?
    Contribute an answer

    People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

    1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
    2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
    3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
    4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
    5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.