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What tax form is issued for scholarships?

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Replies to: What tax form is issued for scholarships?

  • dadof2ddadof2d Registered User Posts: 135 Junior Member
    edited February 9
    @WantsWhatsBest
    Box 1 doesn't show the total paid, it show the total QEE expenses that were paid. QEE does not include room and board.
  • WantWhatsBestWantWhatsBest Registered User Posts: 94 Junior Member
    Hm, interesting comments. Okay, so I'm looking at the fall bill right now. The fees charged: legal services fee; career services fee; arts fee; his program (his major) fee; the instructional fee (tuition). For the purposes of the education credits and deductions (none of which I qualify for), I can see how these might not be considered QEE. And I know that I paid for these separately. These fees are not covered under the tuition waiver except for the general fee and the instructional fee. For the purposes of my 529 withdrawal, however, these fees ARE considered QEE. (as far as I know, because they are considered a requirement to enroll) That's a separate issue, though.

    The 1098T reflects fall and spring. I am sure about that. I asked about it. If I add up those fees listed above (x 2 for 2 semesters) = it falls well short of the $1100 additional that's in the scholarships/grants/credits box. The housing deposit fee was refunded as part of the bill. So, I'm really just not sure what this $1100 is. I don't see why anything above that $`1750 marked for R/B would be taxable. Really confusing. I am going to hope our tax prep person can figure this out, because I sure can't. I'm going to call the school and see if I can get someone to break this down for me. When I called to ask about the 1098T last time, all they could tell me was that it included fall and spring and any other questions -- they said go talk to to your tax advisor.
  • BelknapPointBelknapPoint Registered User Posts: 4,038 Senior Member
    For the purposes of my 529 withdrawal, however, these fees ARE considered QEE. (as far as I know, because they are considered a requirement to enroll)

    Not necessarily. It's quite possible that a school is charging fees that are "a requirement to enroll" that are not considered QEE for a 529 distribution. The first thing that comes to mind is health insurance for the student that is billed by the college because the student does not have other eligible health insurance. This is not a 529 QEE.

    The 1098T reflects fall and spring.

    Reflects what for fall and spring? A 2018 1098-T, in box 1, should only show amounts that were actually paid in 2018, from any source, for qualified tuition and related expenses. Trying to equate an amount in box 1 with the numbers on a billing statement is a waste of time. Anyway, the numbers that a school puts on a 1098-T are notoriously inaccurate. Don't get yourself wrapped around the axle on what the school is reporting. Rely on your own numbers for how much was paid when and for what. That's what matters.
  • mommdcmommdc Registered User Posts: 10,873 Senior Member
    I think you are overthinking this.

    If none of the other scholarships or grants paid for nonqualified expenses (for the purpose of the determination of tax-free scholarships and education credits that is tuition, qualified fees and books), then they are not taxable.

    If the $1,750 was the only taxable scholarship, then report that.
  • WantWhatsBestWantWhatsBest Registered User Posts: 94 Junior Member
    We didn't take health insurance through the school. The fees they are charging, even if not QEE for our 529 (though they do appear to be) are pretty minimal. We spent way more out of pocket than we used 529 funds for. So should be okay there.

    And yes, you all have made a convincing case for me to basically disregard the 1098T and just report what I know is taxable. $1750 R&B scholarship is the only scholarship he got. So that's what we'll report.

    Thanks!
  • BelknapPointBelknapPoint Registered User Posts: 4,038 Senior Member
    We didn't take health insurance through the school. The fees they are charging, even if not QEE for our 529 (though they do appear to be) are pretty minimal. We spent way more out of pocket than we used 529 funds for. So should be okay there.

    Mentioning school-billed health insurance was not done because I thought that applied to your situation. I was using it as an example to counter your apparent assertion that any fee required for enrollment is a 529 QEE.
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