How do I record this information for my 1098T in TurboTax?

[avitaletti18]

Hello, all!

I want to start by saying I did file for an extension, so everything is all well and good, it was excepted! 

I did not file for the 2017 Tax year. I used TurboTax, but because I did not have a job and made no money, TurboTax informed me I didn't need to file. I believe the status in TurboTax is "Started with TurboTax Free Edition."

My question is: TurboTax says my scholarships in Box 5 on my 2018 1098T is considered taxable income because it exceeds my qualified education expenses according to the 1098T. However, I don't think this is correct. Those scholarships were paid to the school on February 1st, 2018 for the 2018 semester, along with loans covering the rest of the semester paid on the same date. I paid $504 out of my own pocket. Because I didn't file for the 2017 year, does this mean I can put my loans + scholarships + the $504 I paid in the TurboTax box that you get when you click "What if this is not what I paid to the school?" Am I even allowed to enter those items at all? 

The two grants are the NJ TAG Grant and the Pell Grant. If I enter 0, as my 1098T has, it is considered taxable income federally and for my state return. State asks me to then enter the Grantor name and ID but I could not find those for the TAG and Pell grants, and I thought they weren't taxable anyway.

It also asks "Did You Ever Receive the American Opportunity or Hope Credit?" How can I tell? I don't think I did, is this an integer or monetary value?

I graduated in Spring 2018 and my 1098T only has the following boxes filled out:

Box 1: $0.00
Box 2: 0.00
Box 3: Checked
Box 4: $0.00
Box 5: About $4,000
Box 6: $0.00
Box 8: Checked
Box 10: $0.00

My Fall 2017 1098 T is:

Box 1: $0.00
Box 2: About $17,000
Box 4: $0.00
Box 5: About $5,000
Box 6: $0.00
Box 7: Checked
Box 8: Checked
Box 10: $0.00

Thank you so much in advance for all your help!

[Hal_Al · Accepted solution]

Yes, enter the  loans + scholarships + the $504 you paid in the TurboTax box that you get when you click "What if this is not what I paid to the school?", since the payments were actually applied, to your account, in 2018. The 2018 interview  should also asked id box 7 was checked on the 2017 1098-T.

As to the "Did You Ever Receive the American Opportunity or Hope Credit" question, you count the times you parents claimed it, if they claimed you as a dependent, in past years. If you (or they) claimed it, in past years, there will be an amount on line 68 of form 1040 (line 44 of frm 1040A).

[avitaletti18]

TurboTax did not ask me if box 7 was checked for my 2017 1098T. Did I miss this somewhere? Thank you so much!