1098-T PS Pro is deducting box 5 from box 1

Forum|Forum|6 years ago
December 7, 2019
8 replies
24 views

program should not be deducting box 5 from box 1 in 2018. I have had two 1098-Ts, and one was done correctly, and one was done wrong from university. (I have the statements from university) You don't have to override to correct this. When filling out the 1098-T scroll down to reconciliation of box 1 line B, and put in amount in box 5. Then go to student info worksheet part V, line 3, and then enter amounts actually paid. You should get the correct credit without having to override. This year is going to be difficult to do education credits right

ProSeries Professional

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Best answer by TaxGuyBill

Huh?

For calculation of the educational credits, the credit is based on the amount of tuition that was NOT paid by scholarships. So unless the scholarships are applied to non-tuition (which is often what you want to do), you (or in this case, the program) need to subtract Box 5 from Box 1 to determine that amount of tuition that is eligible.

As was pointed out in the other thread, Box 1 should include all tuition (including the tuition that was paid by scholarships).

T

TaxGuyBillAnswer

Huh?

For calculation of the educational credits, the credit is based on the amount of tuition that was NOT paid by scholarships. So unless the scholarships are applied to non-tuition (which is often what you want to do), you (or in this case, the program) need to subtract Box 5 from Box 1 to determine that amount of tuition that is eligible.

As was pointed out in the other thread, Box 1 should include all tuition (including the tuition that was paid by scholarships).

rbynaker

Level 13

Other thread, for future reference:

https://accountants-community.intuit.com/questions/1800325

P

poolcleaner

Level 8

One of the nastiest audits I've seen was caused by using the correct numbers instead of those on the 1098-T. That issue was solved easily but it continued on to a very complex Sch C which took months with essentially a no change audit and the loss of many months of time.

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