Taxpayer filing single with wages of $18,000 had a 1098-T w/ scholarship (Pell grant) in excess of tuition of $3,740. Difference is reported in income?

Forum|Forum|6 years ago
December 7, 2019
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Best answer by rbynaker

My starting point is always "Assume the 1098-T is wrong" and then I go from there. :) This year there have been reports of colleges who've never reported in box 1 before only including money received from the student in box 1 (and not including tuition paid by scholarship). I always have the client get a financial history from the school.

taxiowa

Level 8

What was the total Pell Grant Scholarship awarded for 2018 tax year?

J

jennifersue444Author

Level 2

$5,920 total Pell grant. $1,355 in tuition plus $825 books and eligible expenses.

taxiowa

Level 8

Include All $5,920 in Pell grants as income by listing on student worksheet Part V, Line 4 the amount of $5,920. This frees up an education credit to reduce any tax owed.

rbynakerAnswer

Level 13

My starting point is always "Assume the 1098-T is wrong" and then I go from there. :) This year there have been reports of colleges who've never reported in box 1 before only including money received from the student in box 1 (and not including tuition paid by scholarship). I always have the client get a financial history from the school.