Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

If Form 1098T Box 1 is blank and Box 5 has a value, would Box 5 be considered taxable?

Orlando B
Level 2

The client received a 1098T form with blank in Box 1 and $3750 in Box 5.  The client didn't pay anything when enrolling in classes (Tuition).  I think this is the case because Tuition is free for the first two years at a community college in California.  The client only had some book expenses of $400 dollars.  Here is the question, because there isn't enough expenses related to school (Tuition, Material, etc.) to offset Box 5, would the amount of $3,350 ($3,750 - $400) become taxable for the client?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
TaxGuyBill
Level 15

Yes, scholarships that were paid in excess of the qualifying tuition and fee are taxable to the student.

But you generally shouldn't rely solely on the 1098-T, as they are very often wrong.  So you may want to get an itemized printout with the details from the college.

View solution in original post

1 Comment 1
TaxGuyBill
Level 15

Yes, scholarships that were paid in excess of the qualifying tuition and fee are taxable to the student.

But you generally shouldn't rely solely on the 1098-T, as they are very often wrong.  So you may want to get an itemized printout with the details from the college.