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Can 1098-T Box 5 minus Box 1 be reported on my daughter's tax return?

geokjrgeokjr 7 replies2 threads New Member

I do not know if this is OT, but I thought I would ask.

TurboTax asked…
Was any of the Alice’s financial aid already included as income?
Tell us if any of the $XX,XXX in Box 5 of Alice’s 1098-T includes amounts already reported as income on Alice’s tax return.
Yes Alice had scholarship or other aid reported on a Form W-2 or Form 1099-MISC
How much of the $XX,XXX received in scholarships, fellowships, grants or other aid was already reported on Form W-2 or Form 1099-MISC as income?
No, Alice did not have any scholarship or other aid reported on a Form W-2 or Form 1099-MISC.

Situation: Box 1 (Payments received for qualified tuition and related expenses) is approximately $4000 less than then Box 5 (Scholarships and grants).

Question: Can my daughter report the $4000 as income on her tax return if she did not receive s Form W-2 or Form 1099-MISC reporting $4000 as income?
1 replies
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Replies to: Can 1098-T Box 5 minus Box 1 be reported on my daughter's tax return?

  • twoinanddonetwoinanddone 25372 replies21 threads Senior Member
    She will not receive a W2 or 1099 for scholarship money received. That's what the T1098 is for.

    The $4000 might not all be taxable. Did she buy any book or pay for any required lab supplies or other required equipment? My daughters usually had about $400 per semester in books and fees (things like codes for taking tests in some classes, theater required supplies, computer programs).

    I always printed out all the charges for fees, tuition, etc from the bursar's page, took all the scholarships and grants and matched them up.

    Two kids, 5 tax years of time in college, 10 1098-T forms received, not one 1098-T correct. Ever. I kept all charges in the tax year paid and the schools issued the 1098s as if tuition and fees were paid for the spring semesters in Dec, but counted the grants and scholarships for the spring semester in January. I kept them in the same tax year.
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