1098-T

I have seen this happens! It adds it as wages. I believe it has something to do with the scholarships exceeding the tuition. Do you have the student linked to the 1098T and code S as dependent code?  Its correct. i can't recall the publication... I do remember reading it about 6-8 years ago!

Sorry I'm not much help, but I have seen it!

Andrea Hogan-Carter

Hogan Tax Services

Sounds like the 1098T worksheet wasn't completed properly.  Go back and look at the tuition and scholarship boxes.

You need to mark yes in the 3  boxes in the information worksheet that asks if she will be claimed by anyone else (parents)? The scholarship/grant will then be non-taxable income to her. 

Since scholarship amount more than tuition so you should not report 1098-T on his parent tax return. If student has some other expenses can add up his tuition exceed his scholarship is fine report his 1098-T parents return otherwise not. If student has a w-2 you can file for student separately ( mark as dependent)provided that take a refund or due. Just take 1098-T for parent when tuition less than scholarship.

All the scholarship will be taxable until you check the student is going for a decree box towards the top of the taxpayer student worksheet.  Not going for decree; fully taxable.