1098T

Forum|Forum|2 years ago
February 2, 2024
2 replies
18 views

My client is 19 and has a 1098t

box 1 tuition is $15,600

box 5 scholarship $20,369.50

It is causing her to owe... Schedule 1 8R

Do you have to report the 1098t?

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sjrcpa

Level 15

If scholarships are more than tuition and fees the excess is generally taxable.

Have client get transcript from school for charges and payments for the year.

1098-Ts are often incorrect,

The more I know the more I don’t know.

T

TaxGuyBill

Level 15

@MGC94 wrote:

My client is 19 and has a 1098t

box 1 tuition is $15,600

box 5 scholarship $20,369.50

It is causing her to owe... Schedule 1 8R

Do you have to report the 1098t?

Are you asking if you can leave income off the tax return if it causes the client to owe money???

Have you already determined if your client qualifies to be a dependent of her parents? Depending on the circumstances, it could be beneficial to cause your client to owe MORE money by electing to make more of the scholarships taxable, which could allow the parents to receive an educational credit on their tax return.

MGC94Author

Level 7

She does not qualify to be a dependent on her parents return.

Hypothetically let's say she was able to be a dependent. Are you saying you can put box 5 on the taxpayers return and box 1 on the parents return?

ljr

Level 9

just curious - how at 19 is she not a dependent? how much money did she make?

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