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?
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?
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.
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.
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.
Its showing it as income but with it being a Pell grant I just wonderes if the whole thing is tax free. I just wanted to be sure
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