When filing my 1098-T do I need to subtract my grants and/or scholarships (box 5) from my tuition (box 1)?
I am filing my tax return and I am a little confused about the 1098T. Someone told me that I would need to subtract box 5 (grants and scholarships) from box 1 or box 2. I am also a little confused by box 2. Please help! Do I need to enter the amount from box 1 or box 2 as is or do I need to subtract the amount from box 5 and enter that number. And what is the difference between box 1 and 2? I just want to make sure I do the right thing!
- just not thatLv 79 years agoFavorite Answer
"someone" telling you something is 99.9% of the time wrong.
Call a tax person (not your school, or a classmate) and get better advise. Most of the time you don't have to do anything with a 1098-T because you either 1. Didn't make enough money for it to matter or 2. are a dependent student and should be giving it to your parents to file with anyway
- TamaraLv 69 years ago
For questions on taxes and scholarships, be sure to check out the information provided by the IRS, http://www.irs.gov/publications/p970/ch01.html#en_... Even if you received more awards than the cost of your tuition, some or all of it may be tax-free. If you are trying to determine the amount for the education credit, you will need to subtract any 'free' money (scholarships, grants, awards) from the total cost of tuition and only submit what you paid out-of-pocket or through loans.
- Anonymous9 years ago
the second one is right, subtract the amount from box 5 and enter that number.