1098-T Does the student (dependent) file or the parent or both?

[alireza-d97]

I (student) had income in 2015 and would like to file my taxes. My question is whether I do enter my 1098-T information on my tax return or let my parent, who claims me as a dependent, do it on theirs?  Or maybe even on both?

Thank you

[AnnaB · Accepted solution]

Whoever claims the dependency exemption is the one eligible for any education tax breaks.  Therefore, your parents should report the information from your Form 1098-T.

If your scholarships or grants (Box 5) are greater than your tuition, this amount may be taxable income to you and needs to be reported on your tax return.  The same is true if the scholarships/grants were earmarked for room & board.  Normally, it applies to qualified tuition first.

In the event you put it on both, you would not be eligible for any tax breaks because you are a dependent.

[cmcsky]

If the scholarship or grant is greater than the tuition, how is the amount reported as taxable income? Turbotax is not guiding me through this.

[AnnaB]

If you enter the Form 1098-T in and TurboTax finds a taxable scholarship or grant, you will be told you are not eligible for tax breaks.  This amount will flow to Line 7 of your Tax Return.

You can review your Tax Return for this, there should be a notation of SCH.

Please follow the steps below to preview your tax form.
1. From within your tax preparation, click on My Account in the top center
2. Click on Tools
3. In the list at the bottom, click on View Tax Summary
4. Once your Tax Summary loads, click on Preview my 1040 in the white banner/menu above your summary
5. Line 7 should include taxable wages and taxable scholarships and/or grants (there should be an SCH notated)

[ybanag]

"If scholarships are greater than your tuition, this amount needs to be reported on tax return" . The parent can report it or must be student?

[AnnaB]

No, excess grants/scholarships or those earmarked for ineligible expenses such as room and board are reported on the STUDENT'S return.  Scholarships are reported on Line 7 for "wages" and is considered "earned income" for some tax scenarios.

Wages of another person, besides your spouse, never go on your return.

[cmillie41]

student went to public high school no tuition. Where do his wages from p/t job be filed

[AnnaB]

High school tuition (when applicable) does not have a Federal tax break.  If a student makes wages, they can file their own return.  This should NOT go on the parent's return.  If all they have is earned income on a Form W-2, they need to file if their income exceeds $6,300.  If they have any Form 1099-MISC income, they must file if they received $400 due to self-employment tax obligations.

[c-gallagher595]

If your parents are claiming you, they file the 1098t.

[AnnaB]

Whoever is claiming the student's dependency exemption (either themselves or parents in most cases) is the one eligible for education tax breaks, so you're right, the parents should enter the form if they are claiming the student as a dependent.  However, the student should also put the form on their return too because grants/scholarships that exceed tuition and other qualified expenses are taxable income to the student.  TurboTax will properly give the parents tax breaks (if eligible) and properly put the taxable income from the scholarships (if any) on the student's return.

[Ddz14357]

Have about 2800 of income and my college daughter has a 1098t and i have a 10 year son to claim . Have already filed but we didn't file the 1098t we forgot would it affect ours in a positive way or negative way ?

[Hal_Al]

@Ddz14357 - Simple answer: it will effect you in a positive way.  For most people, it increases there refund by $1000  (the main education credit is 40% refundable).

After the refund for your initial filing is received, you should file an amended return to claim the credit.  There are numerous posts on this forum for details on how to do that.

If you post a follow up here, include the amounts in boxes 1 & 5 of your 1098-T.