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Level 1
February 23, 2020

1098 Box 1 and

  • February 23, 2020
  • 1 reply
  • 10 views
  1. Is it there a situation where the amount reported in box 5 of 1098-T (scholarships and grants ) is not deducted from box 1 of 1098-T (Payments received for qualified tuition and related expenses)?
  2. I thought the amount in box 5 was alaways deducted from amount in box 1 up to the amount in the box 1.
  3. The instructions says amount reported in box 5 of the 1098-T may be deducted from amount report in box 1 of the 1098-T.
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    1 reply

    Intuit Community Champion
    February 24, 2020

    A lot of 1098-T report scholarships for different semesters, then you have to make an adjustment further down on the worksheet

    Level 3
    March 5, 2020

    Box 1 does not include room and board but box 5 can. Some colleges are providing reconciliations/ explanations for the numbers on the 1098. You need to play with the payments the taxpayers made to see the best outcome. You have to decide who paid for what, to minimize income from room and board scholarships and maximize the tax credits.