How do I report a CRRSAA grant in ProSeries so it is removed from the total amount of grants/scholarships that is reported in box 5 of the 1098-T?

[rkossmann]

Client received a $2,000 CRRSAA grant. Do I reduce the amount I enter for box 5 by $2,000 or is there a separate place within ProSeries to report this and reduce the grants received amount? The way I am reading IRS publication 970, these higher education emergency grants are not included in gross income.

[qbteachmt]

The person got a student grant, so why do you want to remove it from the reporting of grants?

"In the CRRSAA, there was an expansion of the grant provision permitting institutions to apply the emergency grants to a student’s account—only after receiving written (or electronic) affirmative consent from the student—that could potentially be payments for qualified tuition and related expenses (QTRE). This prompted IRS to reinterpret the requisite reporting requirements for institutions.

With regard to student emergency grants, the notice states that there is no requirement to report those amounts on the Form 1099-MISC; however, it states that “the waiver does not apply to the requirement to file and furnish Form 1098-T, Tuition Statement, with respect to any payments received for qualified tuition and related expenses, including qualified tuition and related expenses paid with grants described in this notice.”

[rkossmann]

This grant, along with others the student received, are in excess of the amount paid for related education expenses for the year. That excess amount is being included as income. I need to remove the $2,000 CRRSAA grant so there is no income reported.

[qbteachmt]

"This grant, along with others the student received"

What's in the other boxes? I understood this would only show on a 1098-T if it was used for expenses in Box 1. In other words, it is offset by expenses.

[rkossmann]

Student received a grant from the school and a pell grant in addition to the CRRSSA grant. The total of all of these grants are reported in box 5. The amount reported in box 1 is less than what is reported in box 5 and the difference is being included as taxable income. If the CRRSSA grant is removed from the total in box 5, there is no amount that is included as taxable income.