1098-T

[HOPE2]

Hi to all. I am confused on Proseries. If I have a 1098-t in box 5, it field by $8500 so that the attached table says $3500 of $8500 is not taxable since it was an emergency aid granted to student due to covid (2020 return). Can I enter the rest $5000 in box 5 while the amount in 1098-T is $8500?

or, can enter not taxable scholarship in part V LINE 3 information worksheet, Educational Assistance part?

Any help very very welcome.

 

[HOPE2]

I NEED YOUR HELP 

[TaxGuyBill · Accepted solution]

I think you can do anything you want to get it to show $5000.  Both of the options that you mentioned seems to work. 

I also think that no matter what you do, the taxpayer will get an IRS notice.  So you may want to prepare a response to that now, and tell the taxpayer to send that in (along with the note from the 1098-T) to the IRS.  And tell the taxpayer it is likely the IRS will lose that, and that they will need to mail it in again.  😂

As a side note, the IRS has said that colleges do not need to enter that non-taxable amount in Box 5, so that college is making it more difficult by reporting it that way.