cancel
Showing results for 
Search instead for 
Did you mean: 
Visitor II

Proper way to adjust 1098T do I correct it on my return and the my dependent child-students return?

Hi - two part question regarding the 1098T - my daughters University billed 2017 tuition in 2016 but it was not paid until 2017. The only amount on the form is in Box #5 for grants. When I click on the link for "what if this not the amount" do I only correct or enter the total amount paid in the grayed-out box, or do I also fill in box #1 and box #2 with the appropriate amounts (both currently blank on my 1098T)?

Second question is I am claiming my daughter as a dependent. She graduated in the spring of 2017 and is required to file a tax return due to her new job. Do we both complete the 1098T section in Turbotax for our respective tax returns - and if so does she make the same corrections as me (so that the grants are not calculated as taxable income)?

Thank You,

Mike

1 Comment
Catalyst V

Proper way to adjust 1098T do I correct it on my return and the my dependent child-students return?

1. you only fill in the box under the box 2 amount for the amounts you actually paid to the school for tuition and fees only (include amounts paid with loans), the 1098-T must be entered exactly as received.  later in the interview you enter room and board and books.

Do note the IRS is changing the 1098-T reporting to cash basis although they are allowing colleges till 2019 to require this new reporting method.

 

2.  this is complicated as do you actually meet the rules of claiming your child as a dependent? During a transition year it gets very complicated. Only the person claiming the dependent can claim education expenses.  your child would report only the excess grant income on their return if you claim them (do note not all grants can be used the same way, some grants are strictly for tuition and fees only and therefore limit how you can use them).

If you are claiming a child over 19, they must be in school for 5 months to be considered a student.

When you’re claiming a dependent who is a child, there are further requirements:

  • The child has to have lived with you for at least half of the year. (7/2 this year)
  • They must not provide over half their own support (this is not calendar but dollar support)
  • The child has to be related to you as a son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of those.
  • The child must be 18 or younger at the end of the year, or under 24 if a student. To be a student, the child must have attended school full-time during at least five months of the year. The five months don’t have to be in a row. 
  • The child must be younger than you (or your spouse, if married filing jointly), unless the child is disabled.

If you cannot claim as a child, then you could claim as a qualifying dependent IF he had made less than $4050, but he made way over that so he cannot be a qualifying dependent either.