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This is very confusing. I'm required to report the Tuition and Scholarship from my 1098-T. I paid the full year's tuition in 2017 (fall and spring 2018) so no Tuition was billed for 2018 (well actually a small lab fee of $50). But the school has Scholarship "income" split, half was on the 1098-T for 2017 (far less than the tuition paid), now the other half is on the 1098-T as "billed" to 2018. With no offsetting "billed" tuition, because it was already paid!

The scholarship in total was well below full tuition, so I got the benefit of it and paid less in tuition in 2017 - no cash benefit was ever received. But how do I report this? The 1098-T if entered verbatim would have me taxed on it as income. The benefit was actually "received" and used the previous year.

Should I ask the school to amend the 1098-T forms? I have no idea what direction to go on this. Certainly don't think taxing it is proper, if this amount were on the previous 1098-T the paid tuition would still have been greater than the scholarship amount, and no tax liability would be found.

Suggestions?

  • You keep using the word billed, but I do not think it means what you think it means. What numbers are in what boxes on the 1098-T? – Ben Voigt Mar 2 at 21:40
  • Two questions: Is box 3 checked on the 1098-T? "Check if you have changed your reporting method for 2018" Was box 7 checked last year year? "Check this box if the amount in box 1 includes amounts for an academic period beginning January—March 2018" – mhoran_psprep Mar 3 at 14:58
  • Box 3 was checked as a matter of fact. So I think I have a solution. In Turbo Tax checked the box that a 1098-T was received, but then No, I don't want to try to reduce my taxes with education expenses. No more questions asked. – Brian B Mar 6 at 12:52

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