The CORRECT way to Calculate Education Tax Credits | 1098-T Explained

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IRS Form 1098-T is probably one of the most misunderstood tax forms college students have to deal with. Do you know how the American opportunity tax credit or lifetime learning credit is actually calculated? Where does the 1098-T fit into all of this? In this video, we're making sense of education tax credits!
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▶ RESOURCES MENTIONED
- Tax Deductions for College Students 2018: • Tax Deductions for Col...
- IRS Publication 970: www.irs.gov/pub/irs-pdf/p970.pdf
- IRS Form 8863: www.irs.gov/pub/irs-pdf/f8863...
- IRS Form 8863 Instructions: www.irs.gov/pub/irs-pdf/i8863...
- Are you eligible to claim an education credit? Find out here: www.irs.gov/help/ita/am-i-eli...
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18 фев 2019

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Комментарии : 248

@victoriadefreece4464 2 года назад

This is the first time I ever heard of this. I’m still new and learning about taxes but this is the most I’ve understood so far! Yet still trying to figure out how to apply it to my own dollar amounts but we’re getting somewhere! Thank you!

@TheBemused 2 года назад

So glad to hear that! One step at a time! -Akeiva

@Solomeo_Paredes159 Год назад

@@TheBemused the irs asked the transcripts and form of payment for the year auditing. Charges in tuition 2,600 on year 2020 but on payment plan, i paid 4,500. Can I still get the llc for what i paid that year?

@jacobkowski7705 3 года назад

This is the best instruction on education credits. Thank you very much.

@TheBemused 3 года назад

Thank you for watching! -Akeiva

@carltonlennon4046 2 года назад

Love your communication skills. You are AMAZING!

@TheBemused 2 года назад

Thanks so much, Carlton! -Akeiva

@japerelectronics2568 3 года назад

I have two goals with my kids college. 1) Take advantage of all tax credits. 2) Minimize the amount of private loans they have. 3) Wait as long as possible for them to borrow money because of accrues interest. I have enough in a 529 to pay for the entire first year which would mean delaying borrowing. Can you still claim education tax credits if you use a 529? If not how much would you recommend paying out of pocket each year?

@levettenicole8168 3 года назад

Great video I wanted to ask what does it mean when box 4 is negative

@salahlatif3323 4 года назад

Hi, I really appreciate your time to create this video that officially still helping us in 2020 :) I was wondering if you could give me some advice. And thank you in advance for helping :) So I’m using H&R Block online tax to file my taxes this year and I did not receive a 1098t form. I called the school and they said I don't get one because they reported my Spring 2019 with 2018 1098T form. But I paid for Spring 2019 tuition during 2019. Should I report it, if yes, how should I do it? (Keep in mind it was my last semester and I don't remember if I claimed AOC for 4 years) Thank you and stay safe

@TheBemused 4 года назад

That’s exactly the problem caused in many cases! I would first look back at your prior returns to determine if those Spring 2019 expenses were already claimed on a prior year’s return. If they were, then you could choose to amend prior year returns and claim 2019’s expenses on 2019’s return (whether or not you receive a 1098-T). Thanks for watching! -Akeiva

@Htman 2 года назад

@@TheBemused Is there a way to contact you? I’m soo confused

@JohnnyBGood11 4 года назад

Most tax software has a worksheet to add other costs such as books and supplies not included on the 1098-T form and no one cannot write off computers as supplies. at most IRS seminars when talking about this form the tax pros say get an actual print out of what was paid to the University for that tax year to be sure what was paid..since the first day colleges started sending these 1098-T forms most were wrong and the colleges didn't seem to care that they didn't know how to fill these 1098-T forms....and the colleges still don't.

@victoriadefreece4464 2 года назад

Question: why keep $1000 in the pell grant instead putting all the pell ($5000) in as income? And how do we determine how much of the scholarship should stay under scholarship and how much should be put under income?

@Mvuyo_abroad Год назад

Great video! Any idea if international student need to file for 8863 if they received form 1098T? Thank you

@min2oly Год назад

Power to the people ✊🏾

@alisonbruemmer3580 3 года назад

Okay so I started college in fall 2015. Got my associates in fall of 2017. Got my bachelors in spring 2020. Its asking me if I got 4 years of college credit (bachelors) before 2020? Maybe im just dumb but its confusing me. Should I say yes or no? I've been in college for 5 years..? Also, my parents have been claiming me as a dependent for the past few years, but we never filed my 1098T forms...this is the first time I'm doing it. Am I able to file my other ones or not? I was eligible to be filing as independent but my parents have been making me file as dependent bc they're either dumb or taking advantage of me being "dependent"

@rralph3445 Год назад

Another enjoyed video

@june45628 Год назад

Question if your still actively responding: The IRS recently denied my brother from receiving the American opportunity credit for the 2020 tax year. He started school in the fall of 2016. Wouldn’t that still make him eligible to receive the American opportunity credit for the 2020 tax year considering he completed school in May 2020.

@patjohnson9239 3 года назад

I dropped out fall 2019 but got a 1098-T for 2020 with my amount due listed in box 4 but nothing in any other box .. what do I do?

@tyneishayoung7927 4 года назад

At this point can u do my taxes lol

@TheBemused 4 года назад

Hahaha if only life were that simple. Thanks for watching! -Akeiva

@socaltravelball 2 года назад

Question, and maybe you or someone else on here can help. I am looking at the 1098-T form. There is an amount on Box 1, and under Box 5, it shows 3500 in Grants, Scholarships, etc... However, my son did not get scholarships and grants, or loans. We paid cash for his classes. No loans. So there should be a 0 under Box 5, but it says 3500. I asked my son to check online to see if that money exists on his student finances but there is nothing there. It would be nice if he was given that 3500 but as of yet we are unable to track it down. Not sure. This is confusing.

@vgk11 4 месяца назад

Do u actually need a 1098 T to claim Lifetime Learning Credit or qualified expenses paid by you towards college expenses. Thanks

@TheBemused 5 лет назад

We got so many questions on the 1098-T from a previous video that we decided to make a follow-up video! We hope this gives you guys some more clarity but, if not, drop your questions in the comments below!

@toolman67 3 года назад

Thanks for your help!

@TheBemused 3 года назад

Thank you for watching! -Akeiva

@toolman67 3 года назад

@@TheBemused First time watcher, did you study accounting?

@TheBemused 3 года назад

I did! I’m a financial planner by profession & training, but I also have my CPA. -Akeiva

@toolman67 3 года назад

@@TheBemused very cool, well done!!!

@chadalpha2149 3 года назад

thanks!!

@TheBemused 3 года назад

Thank you for watching! -Akeiva

@christalfiguereo7469 4 года назад

Hi, I really appreciate the time you took to create this video! I was wondering if you could give me some advice. And thank you in advance for helping!! So I’m using turbo tax to file my taxes this year and I did not receive a 1098t form (or any other school form) In 2019 I was enrolled in the spring full time and I accepted grants as well as accumulated some more student loans (Fafsa). I did get a reimbursement payment that was deposited on a debit card provided by the college. (The reimbursement is because my total loans/grants exceeded the amount of tuition due. So I used that money I received to pay for school supplies, books, transport etc.) My questions are: What would be my educational expenses? Would it be $0 because I didn’t pay for it using personal income? Or should I put the amount I received back as a reimbursement? Or should I put the amount I actually spent on all books and supplies? Also, there’s a section on turbo tax called Scholarships and Financial Aid, that asks: Did you receive a scholarship or grant in 2019? I responded with yes. Then, it asks to enter the amount received. My question is what amount should I input? $0? Just the amount of the grants? Just the amount of the student loans? Both the grants/loans?

@sniperdude425 4 года назад

Hey i got the same question would love an answer thanks

@TheBemused 4 года назад

Unfortunately, I’m not allowed to give you specific advice, so I’m sorry I can’t be of more help! However, just know that each tax software is going to be a little different. The goal is to get to the amount of qualifying expenses (tuition & fees) that you paid using out of pocket or student loan funding. I fear putting in the amount of the scholarship can make things tricky! I would maybe consult a turbotax expert or tax professional who can really drill into this with you. -Akeiva

@sniperdude425 4 года назад

The Bemused: Making Sense of Money 💰 thank you so much!

@yudelisthomas4189 2 года назад

Thank you so much for this video I am a mother and is my child first year in college I didn’t understand too much. But I will reply it. Thank you so much

@TheBemused 2 года назад

So glad it helped! -Akeiva

@ryan-chase 3 года назад

@3:14 you mention that most schools used to only fill out box 2- the amount billed, but nothing in box 1 - the amount actually paid. This was the case with my taxes in 2017. However, I "moved" the amount to box 1 when I filled out my 1040 and put nothing in box 2. Would this have any impact on my taxes?

@TheBemused 3 года назад

The objective is to report the amounts actually paid within the calendar year, whatever that number happens to be. Hope that helps! -Akeiva

@marquonnygoochtavius6228 Год назад

So is my total tuition paid: my tuition paid for the year plus box 5 plus box 1? Or just box 5?

@mariannaduarte2910 4 года назад

GOD BLESS YOU THANK YOU FOR THIS!!

@TheBemused 4 года назад

Thank you for watching! God bless you, too! -Akeiva

@abbyj7164 4 года назад

I’m filing my taxes on TurboTax and they’re suggesting I pay $60 for the Deluxe version in order to include higher education info. Can I just continue with the free version and not file my 1098-T? Or do you think I would be missing out on some potential money back from educational credits? How can I know for sure whether or not I’ll get more money back?

@TheBemused 4 года назад

Unfortunately, I can’t advise you on what to do, but comparing the cost vs. benefit is a smart way to think about it! -Akeiva

@malikpernarh2245 3 года назад

Thanks dear so my question is had to buy a laptop for college. Can i claim that on my taxes and if yes do i need the receipt for it and how do i itemized it?

@TheBemused 3 года назад

A laptop might count as a qualified education expense for the AOTC or LLC. Here’s a helpful resource on that topic: www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

@LunaBey777 4 года назад

I am an online student and I just received a 1098t form this year even though I started school last year in the summer. I did receive a pell grant that covered my tuition and fees but I still had to take out a loan. when I received my form the first and fifth box was filled out. I also am planning to do my taxes alone. I am very nervous to be filing alone and I am unsure if I should file as I also have a regular tax form from the job I worked last year to file as well. I am still a bit confused about how to file and wondering if you had any advice.

@TheBemused 4 года назад

Hi Tina! I recommend you watch the other videos in our “Making Sense of Taxes” playlist. They cover things like how taxes work, how to file for free, and even more detail on claiming education tax credits. I would start there and hope the videos provide some clarity for you! -Akeiva

@seekinghimdaily92 5 лет назад

So just to be clear, I have a quick question: I returned to school in 11/2018 and have been enrolled at least half time and received my 1098T. It has a dollar amount in Box 1 (this is my first time taking out student loans, pursuing a bachelors degree; the amount is approx. $3,100). I put this amount where my tax filing program (Credit Karma) requested it. It really boosted my refund amount and now I am...nervous. I don’t want to get any negative auditing when I file and feel I may now need a preparer for this (this is my first time completing taxes on my own - I’m 26, independent student). I have not paid anything toward my loans AT ALL - how am I *potentially* getting such a refund back like this? It’s approximately $2,200 on top of my usual from my employment tax refund for federal.

@TheBemused 5 лет назад

Claiming the AOTC or Lifetime Learning Credit has nothing to do with whether you’ve been repaying your student loans. If you didn’t have any scholarships or grants and only used loans to pay your tuition and fees in 2018, that amount will show up in box 1. If you feel unsure, consider having a tax professional review your return. Hope that helps! -Akeiva

@seekinghimdaily92 5 лет назад

The Bemused: Making Sense of Money 💰 Good Morning! I just knew you’d reply soon - thank you! I’ve seen too many people go down from some tax fraud situations and I am just trying to avoid the pitfalls. I’m nervous about filing myself for the first time :-) I was apprehensive about others reviewing because I don’t want them trying to take my money either although I will likely take your advice. If I am getting a reimbursement like this, I am pleasantly surprised. Thank you for your work and response!

@TheBemused 5 лет назад

Of course! Filing taxes on your own for the first time can definitely be a little scary. As long as you have someone reputable reviewing the return and set payment expectations up front, I think you should be okay! Better to be safe than sorry! -Akeiva

@gabrielwhite1991 3 года назад

Can you file the lifetime learning credit if your graduated and never filed it when you were enrolled in the college?

@TheBemused 3 года назад

If you are eligible and if possible, you can file an amended tax return for the applicable year. -Akeiva

@TheSubset8 3 года назад

Hi I have a question. When claiming my federal pell grant as taxable income, will that count as a qualified educational expense within itself or does it simply just not get deducted from expenses I do incur? For example if my tuition cost 12k and I get 12k in financial aid to cover the entire cost.. if I claim 8k as taxable income will I now have 4k in qualified expenses to be eligible for the full AOTC?

@TheBemused 3 года назад

A pell grant is usually only counted as taxable income if the money is not used for qualified education expenses. The AOTC would only be available if you paid for qualified education expenses, so in the example you gave, I don’t think it would qualify. -Akeiva

@leandrodeoliveirachagas7982 3 года назад

0:53 Love this moment

@ube-23s 3 года назад

@John Doe ??????

@ube-23s 3 года назад

@John Doe sorry I was replying to Leandro de Oliveira

@ryan-chase 3 года назад

you're awesome :)

@TheBemused 3 года назад

You too! -Akeiva

@Ohthatsmillie__ Год назад

I need your help please I’m trying to amend my taxes so I can get credit I have no idea what I’m doing I normally file my own taxes

@nextwavetaxservices9080 4 года назад

This video is very helpful- Thanks! I am still confused about the amount listed on the 1098T box 5?? What is this amount for? Would box 5 amount be Additional qualified expenses? OR tax free education assistance? Is box 1 the amount that goes for qualified expenses?

@themojadokids3171 4 года назад

This is my question also. My box 5 is greater than box 1.

@wonderwoman3122 Год назад

@@themojadokids3171 so is my sons

@JLESLIE151 4 года назад

Hi, so i am trying to do my own taxes online this year. But i am confused on how to calculate my expenses from my 1098 t form. I see the box 1 and 5 listed. But im not sure what to use to calculate? Should i just use box 5? Also im claiming the AOTC.

@mwakakashinka5015 4 года назад

JLESLIE151 did you find out? I’m confused too

@TheBemused 4 года назад

To further clarify, the premise of the video is that the 1098-T is not always the most reliable source of information for calculating this. I would start with looking at your student account history; a list of actual charges and applicable payments made (including student loans) during the calendar year. -Akeiva

@lifewithdestinee1446 4 года назад

If i am claiming the AOC can i include expenses on my laptop, books, supplies? Also, will i need to provide receipts? What happens if i did not keep record of them?

@kira.j2 4 года назад

lifewithdestinee I’m wondering the same thing

@TheBemused 4 года назад

Those can be considered qualified expenses for the year in which they were purchased. You don’t need to provide receipts with your tax return, but it’s good practice to keep them on file in the event you get audited! -Akeiva

@JohnnyBGood11 4 года назад

Laptops usually no but people always put them down it's a gray area....put it down as supplies if you take it as a write off, sink the cost in supplies if you get an audit...lol...just say those expenses are for books and supplies like pens paper, an expensive calculator...don't mention a computer to an IRS agent always say little as possible if you get audited,...and if you ever find yourself in an audit stick to what you are audited on and always be nice to the auditor and if the auditor asks about something else on your return, be nice and say, I didn't prepare for that but we can reschedule another time to go over it if you like...that is if the question was getting really in depth...if it's a simple question you can answer it....just like in court the less you say the better off you are.

@anthonyjimenez4894 5 месяцев назад

Is it normal for box 5 to be higher than box 1?

@WIGAHOLIC14 3 года назад

I live in Wisconsin I need to know how to calculate the amount of college expenses for state taxes. Federal does it automatically but not sure how to do it on state. This is for my daughter this is her 3rd year.

@TheBemused 3 года назад

Unfortunately, I’m not familiar with state-specific education tax benefits. I would ask someone who is! -Akeiva

@bigblue3568 4 года назад

1098T LIne 1 and 2 blank for 2019, Line 5 is $3900 (her merit scholarship that covered tuition only) So since they reported Spring semester back on 2018 1098T we now get screwed and have to pay income tax on this merit scholarship?

@TheBemused 4 года назад

Aw, man! I know this can all be confusing. Unfortunately, I can’t give you personalized tax advice. However, I would suggest maybe speaking with a tax professional who can help you out and figure out your options. -Akeiva

@dan33klein 4 года назад

Shawn K Same here...

@emilyngarcia5075 3 года назад

Hello! Do you have any suggestions for filing taxes? I've always used Turbo Tax, and always receive a $1000 credit. However, this year it's not letting me obtain that credit! Not sure why, This is my senior year, my box 1 was 13000 and grants and scholarship was 4000. Everything else was out of pocket. Pls help! Thank youjuuuu!

@jenessa6602 3 месяца назад

Having the same issue

@CL0UD143 3 года назад

I still received 1098-t form but I already dropped out of college so idk what to do with it... any tips?

@TheBemused 3 года назад

Nothing different than what’s discussed in this video. The same rules apply. -Akeiva

@htl2640 4 года назад

Where do you add the cost of books on the form?

@JohnnyBGood11 4 года назад

Most likely if you do it on a tax program it will have a worksheet for the cost of books and supplies

@dbricksawc3634 4 года назад

So, because of COVID my class syllabus says that I should have reliable internet connection and a computer..can a laptop quality for the American Opportunity credit

@TheBemused 4 года назад

If it is required for a course, it should count as a qualified education expense for the AOTC! -Akeiva

@Jackayyramirez 4 года назад

I am trying to do this as well.

@KevinK3vin0 3 года назад

@@TheBemused so does that mena you get like reimbursed for the purchase??

@TheBemused 3 года назад

Not reimbursed, but it counts as a qualified expense when adding up eligible expenses for the AOTC. -Akeiva

@dbricksawc3634 3 года назад

@@TheBemused so, I can add the price of the laptop with my 1098 form. Right?up to $4500

@krysalex8130 2 года назад

I've heard there is a form for children in private school during elementary where a parent can get money back separate from the child care credit called tax reform form?? Is that true? If so how does that work?

@TheBemused 2 года назад

I don’t know of anything like that on the federal level. However, various states may have tax credits related to private elementary school. -Akeiva

@paulinenguyen6755 3 года назад

Can I make amends for previous years if I have never filed for a 1098-T? My school never sent any and I just heard about this! Any fees?

@TheBemused 3 года назад

Taxpayers have the option of amending prior year's tax returns within 3 years after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. You can learn more here: www.irs.gov/taxtopics/tc308 -Akeiva

@sidnaaz5769 3 года назад

Hey girly! Can you update us with you filing your tax from the past because I’m in the same situation.

@brendatrevino4320 2 года назад

Do you have when VA benefits is the only income as well With GI bill & grants

@TheBemused 2 года назад

Not sure I understand your question -Akeiva

@lamooshka6899 4 года назад

Are application fees and deposit consider eligible for the credit?

@TheBemused 4 года назад

“In general, qualified expenses for the education tax credits include tuition and required fees for the enrollment or attendance at an eligible post-secondary educational institution.” -IRS

@jacobkowski7705 3 года назад

Why does a tax software ask us to put in Box 2 amounts when the amount is not an actual amount I paid? I am asked to fill in 1098-T exactly same way as in the form. What do I do? Can IRS audit me citing my 1098 and actual amount in form 8863 are different?

@TheBemused 3 года назад

Different tax softwares might have you fill it out differently. I would just say to keep any proof/documentation of qualifying amounts paid. And if you’re having issues, maybe try calling the software company and asking if they can assist with the best way to report the information. -Akeiva

@jesusmysavior6744 2 года назад

Do I need receipt for all the books and computer I bought to file for expenses?how about gas to commute?

@TheBemused 2 года назад

Generally, it’s good practice to hold onto any receipts or relevant proof to substantiate any tax deductions or credits you take. -Akeiva

@priscillavidaurri5585 2 года назад

Hello, can I claim the AOC TAX Credit if filing married jointly? Grants paid for all my school expenses so I never paid anything out of pocket.

@TheBemused 2 года назад

Taxpayers can only claim these credits if they paid eligible expenses out of pocket or through borrowing. -Akeiva

@kindree5414 Год назад

Hi, I got grants and FAFSA and I have three of the 1098-T (2020,2021,2022) and they all say “Copy B For Student: This is important tax information and is being furnished to the IRS. This form must be used to complete Form 8863 to claim education credits. Give it to the tax preparer or use it to prepare the tax return”. I am a dependent and my family has a tax preparer who does our taxes, but I did not know I was supposed to inform our tax preparer about these; I thought that he would have already received the information through the IRS. I will send him the 2022 form when we do our taxes in a few months but what do I do about the 2020 and 2021 forms? My school has sent me online versions of them. Will I get in trouble for not have shown those forms in 2020 and 2021? Should I mention to the tax preparer that I didn’t send the 2020 and 2021 forms?

@TheBemused Год назад

Hi there! I can't give you specific advice but, in general, know that tax preparers don't receive any information that you don't give them. You can also ask the tax preparer whether it makes sense to file an amended tax return for prior years 🙂 -Akeiva

@RoseGold1224 4 года назад

I still don’t understand argh. So I did get a pell grant and a student loan but no job

@TheBemused 4 года назад

You don’t need a job to qualify. Student loans are considered out of pocket to the IRS. -Akeiva

@deidrastanley8164 3 года назад

Hey. How are yu? If your getting hope will you still be able to get anything back for taxes. From college?

@TheBemused 3 года назад

It all depends on how much you received for the scholarship, how much your qualified expenses are, and your other sources of college funding. -Akeiva

@kamillesimon812 4 года назад

If I payed my fall and spring semester before the end of the year, will I still run into the same problem during tax year 5?

@Almgaming3 4 года назад

I only got box 1 and 5 but dont know how to put it in turbotax

@TheBemused 4 года назад

I'm sorry to hear you're having trouble with it. I'd suggest maybe reaching out to Turbotax or a tax expert who can provide personalized advice. -Akeiva

@dan33klein 4 года назад

You never said what you ended up doing with your 5th year 1098T that only included scholarships in line 5. Did you have to claim that as taxable income?

@TheBemused 4 года назад

I ended up not reporting it at all. -Akeiva

@JohnnyBGood11 4 года назад

on your scholarships, as long as it was for college tuition and books not taxable, if some of that scholarship is used for room and board then yes that portion is taxable.

@mercysuikim 4 года назад

My scholarship grant $10257 from box 5 and $8546 from box 1 . My taxable scholarships income is box 5 - box 1 = answer Right? My expense is $ 500 can I claim the american opportunity credit? Cause if I put $500 on 8863 on the next line I have to minus from $2000

@TheBemused 4 года назад

Unfortunately, I can’t give you personalized tax advice. However, I would suggest speaking with a tax pro who can! -Akeiva

@ChrisRoxDuhh 3 года назад

What if I'm my mom isn't claiming me as a dependent, but we both paid toward tuition and took out loans, can we both claim the AOTC when filing?

@TheBemused 3 года назад

Only one taxpayer can claim the AOTC. However, if any of you qualify for the student loan interest deduction, you should be able to take it related to your respective loans. -Akeiva

@unityaboriginelove6595 Год назад

@@TheBemused - If my daughter and I are both in college(I'm in graduate school and she's in undergrad). I claim her as a dependent(she lives with me and doesn't work) and I pay out of pocket for 90% of expenses. No loans. We can only claim one of the 1098T forms, not both?

@georgeruiz7073 3 года назад

What if box 4 has an X amount of money? Is this added or subtracted to which box??

@TheBemused 3 года назад

I’m not sure I understand your question. Box 4 lists the amount of money withheld from your paycheck for social security taxes, generally 6.2% of box 3 wages. -Akeiva

@DevonMcDonald1 4 года назад

so what number am i putting in for the form the amount paid or the total cost of attendance? Or the total cost of attendance minus the amount paid? i'm doing this through credit karma and they are asking for a single number and idk what to type in even after watching this video and few others i'm still confused

@TheBemused 4 года назад

Generally, “you can claim an education credit for qualified education expenses PAID by cash, check, credit or debit card or paid with money from a loan” during that tax year. Qualified expenses are generally tuition & mandatory fees; no room or board. Hope that’s helpful! -Akeiva

@DevonMcDonald1 4 года назад

The Bemused: Making Sense of Money 💰 so what exactly am I putting? Do I add up all the fees and loans together and put that in, cause that’s like over $10,000 or am I only using the number from the 1098-T form

@TheBemused 4 года назад

It would be whatever was paid for qualified expenses, including loans. Each tax software is different, so I wouldn’t know exactly what they are asking for, but that is the number that calculations would be based off of. -Akeiva

@wavyrendon 4 года назад

Do we have to report grant/scholarship amount (box 5) if more than your tuition (box 1/box 2) on your 1098-t form? I've noticed my refund decreased. I also reported my w2 form.

@JohnnyBGood11 4 года назад

The tax program will count it as taxable income if you don't zero it out and put supplies and books costs down if you didn't use any of that money for room and board just leave it off...if you used it for college grant/scholarship for room and board it's taxable.

@wavyrendon 4 года назад

@@JohnnyBGood11 in my situation, do I have to report my 1098-t form? I reported the cost of my school related expenses.

@JohnnyBGood11 4 года назад

@@wavyrendon Lets say you have 5000 in scholarship/grant income and you have 2500 in loans but it was not on that 1098-t form...well you would NOT get any of the affordable care act credit because what you paid the college is not over the grant and scholarship money received...are you doing this on a tax program?...if you're doing it on a tax program which I highly suggest you will type in everything you see on your 1098-T form and there's a worksheet to add other payments made for college tuition not on the form and/or for other supplies and books...notebooks and computers are a gray area...lots of people take them for college you would have to prove you bought it because of taking classes.

@JohnnyBGood11 4 года назад

@@wavyrendon Did you have scholarship / grant income?

@pb4ugo19 Год назад

@@JohnnyBGood11 out of curiosity, what if the person doesn't work? How would they file that form?

@dannguyen6359 5 лет назад

Hi! I have on box 1 approximately 6000 and box 5 approx 3700. Would I still qualify for the AOTC?

@TheBemused 5 лет назад

It depends. You have to consider all of the factors and information outside of the 1098-T mentioned in the video. -Akeiva

@dannguyen6359 5 лет назад

The Bemused: Making Sense of Money 💰 ah thanks for replaying! So if my box 1 says 6k would my total expense be 6000-3700? And then the first 2000 is 100% + 25% of the remaining?

@TheBemused 5 лет назад

Not exactly. The credit is not based just off of the 1098-T. You want to make sure $6k is what you actually paid in 2018 based on your account history and go from there. -Akeiva

@mwoods4608 3 года назад

I'm trying to do my sons taxes n it says he doesn't qualify for the credit... I'm trying to figure out why

@TheBemused 3 года назад

Without knowing exactly which credit you’re referring to, it could be due to a number of factors such as income, amount of years in school, or there could be an error in the way the information is being input that makes it seem that there are no qualified education expenses that would warrant a tax credit. -Akeiva

@NiaMSnow 3 года назад

Can someone please help. For the llc credit for college students for qualifications - would someone who is not paying out of pocket but having the loans pay for college. Would I qualify

@TheBemused 3 года назад

Using student loans is considered out of pocket for the purpose of education tax credits. -Akeiva

@NiaMSnow 3 года назад

@@TheBemused thank you so kindly for responding! One more question if I were to be audit for that- would I just show them my college statements?

@indicativelyunfortunate146 2 года назад

What if I don’t have anything in box 1? Can I still get the credit if I’ve never have got the credit before?

@TheBemused 2 года назад

The real question is whether or not you have qualifying expenses, regardless of what the form says. If so, and you qualify for an education related tax deduction, then you can look into taking advantage of that. -Akeiva

@tedrab28 4 года назад

My daughter received only financial aid. She has a 1098t it’s only 1084. Do I need to use it on my taxes.

@TheBemused 4 года назад

Financial aid can mean anything from loans to grants to scholarships, so I’m not clear on your question, but I would recommend reaching out to a tax professional who can help! -Akeiva

@tedrab28 4 года назад

The Bemused: Making Sense of Money 💰 she just a pell grant it covered all her expenses including books.

@TheBemused 4 года назад

If there were no expenses paid out of pocket (or with loans) for school, then there likely would be no related education tax benefit to take advantage of. However, I would suggest discussing with your tax professional for further clarity! -Akeiva

@tayokristine 3 года назад

You're pretty and thank you soooooo much for making this video

@TheBemused 3 года назад

Thank you! -Akeiva

@Libbydar_17 Год назад

I’m an international student and got this form, but when i opened it it said: “Message You do not have any 1098-T Data available. Please note that you will not receive a 1098-T if any of the following apply: 1. Your grants and/or scholarships exceeded your allowable charges for the calendar year. 2. You did not have allowable charges in the calendar year. What does this mean?

@tokoniboleigha8300 Год назад

Try contacting your school and request for it

@evansayoola8097 4 года назад

Do loans you took out count as an expense?

@TheBemused 4 года назад

Loans used to pay for school are considered payments for 1098-T purposes. Hope that helps! -Akeiva

@evansayoola8097 4 года назад

The Bemused: Making Sense of Money 💰 thank you. So that means if I took out a loan of over $4,000 I qualify for the max return of $2500?

@TheBemused 4 года назад

Evans Ayoola You’re welcome! Not necessarily. You have to also consider the other factors mentioned in the video. -Akeiva

@princesscami122099 4 года назад

Hey! I have a question. The amount in box 1 is higher than the amount in box 5. Box 1 has about $6,300 and box 5 has like $4,300. Is this possibly because I took out loans?

@TheBemused 4 года назад

Hey there! It is definitely possible and reasonable for Box 1 to reflect a higher number than Box 5 for several reasons. -Akeiva

@markmartinez911 4 года назад

@@TheBemused what if I do not have an amount know any boxes just on box 5

@JohnnyBGood11 4 года назад

@@markmartinez911 Go to your college and get an actual print out of what you paid via check or via loans if you don't trust the college of filling this form out correctly...and use what you actually paid and you have the proof from the print out for year 2019...you can also put down books and supplies for classes...but one cannot write off computers but many people do.

@markmartinez911 4 года назад

@@JohnnyBGood11 yes, I paid for one class but I didnt show up in my 1098t and my first 2 boxes are blank and the tuition is the only box full

@JohnnyBGood11 4 года назад

@@markmartinez911 If yo paid for one class and it's in box one and nothing is in box 5 no grants/scholarships and you did not go halftime there are other credits you can take.

@rishib333 4 года назад

So I don't owe any money on my tax return but my 1098-E has 308 on it. Can I get this money included in my refund or would it not make a difference because I dont owe anything?

@TheBemused 4 года назад

Potentially. I want to clarify/confirm that 1098-E is a different form than what’s discussed in this video. There are some assumptions made here, including that your income qualifies you to take the deduction. But to answer your question, potentially. I would consult your tax professional for specific advice.

@lutherevans968 3 года назад

I don't understand why my federal refund came up as $826 after filling out the education portion on TurboTax. I was expecting it to be $1000 (not $2,500 since my income is $0), and I added $27 for a book that I purchased for one of the courses. Not sure what I'm missing.

@TheBemused 3 года назад

Unfortunately, I wouldn’t be able to help since I don’t know the details of your particular situation. However, you may want to consider consulting a tax professional that may be able to help. Best wishes to you! -Akeiva

@lutherevans968 3 года назад

@@TheBemused Yes, I am considering that. I appreciate the reply!

@FireweedFarm 4 года назад

Ok, another video source says students or parents paying can take the American Opportunity Credit. Instructions behind the "Caution" for line 7 of form 8863 ask if you're over or under age 18, age 24, etc. So that applies to the student, not the parent, right? It also asks if ("you were over age 18" and) "your earned income ... was less than one-half of your support." So if the parent paid the bills, is that saying the student was over age 18, and the "earned income" and "support" issues are about the parents? The instructions don't say, but rather mixes them together as if they're about the same person. So in this case, (parents paid,) does it switch back and forth between the parent and student as affected by the caution? And have you explained these cautions anywhere?

@TheBemused 4 года назад

We talk about who is eligible to claim the credit in a related video “Tax Deductions for College Students”. In short, it depends on dependency status for tax purposes. Hope that helps! -Akeiva

@FireweedFarm 4 года назад

@@TheBemused Ok, yes. It's all about dependency status, which depends upon age, etc.

@KevinK3vin0 3 года назад

If I file my 1098-t will it reduce the amount of financial aid I'll receive?

@TheBemused 3 года назад

No. They have nothing to do with each other. -Akeiva

@vkasende 2 года назад

if my son receive a 1098 with box 1: $5,807 and box 5: $7,743. Can I use his excess scholarship $1936 in his taxable income also include $4000 more of his scholarship in his income?

@TheBemused 2 года назад

Hi Victor! Unfortunately, I can’t provide you with specific advice. However, as you mentioned, if there’s scholarship money left over after covering qualified education expenses, it should be included in the student’s gross taxable income. -Akeiva

@yericovidal1717 4 года назад

Hi thanks ,can I add more expensive in box 1 ,if I have my 1098t box1 is 7000 and my box 5 is 4000 grants , but I need to put more money in box1 ,for qualified 1000 thousand , can I do that. I subscribed and I give you like.thankyou

@TheBemused 4 года назад

You can only claim a deduction for the amount of money you paid in qualified education expenses, regardless of the 1098-T. -Akeiva

@yericovidal1717 4 года назад

The Bemused: Making Sense of Money 💰 thanks

@xoxoscruff 4 года назад

I tried to amend it from all the way up to 2016, and it wouldnt let me on turbo tax...it was basically saying my mom made a lot or something like that. I dont know what to do

@TheBemused 4 года назад

Income limits do apply for many tax breaks. Sorry it didn’t work out for you! -Akeiva

@xoxoscruff 4 года назад

@@TheBemused thank you for replying, many youtubers dont nowadays. And i do appreciate it!

@TheBemused 4 года назад

@@xoxoscruff Of course! We try to respond to as many people as we can! -Akeiva

@kenjr7632 3 года назад

See we can get a 2500 refund? How much do pay out do pocket to get the full 2500 refund?

@TheBemused 3 года назад

Not a refund, a tax credit. It reduces your tax bill by up to $2,500. I would encourage you to watch this video for more info! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-YdValSCc424.html Sorry, I messed up my last comment! -Akeiva

@sb0mb 4 года назад

How the hell does this video only have 6000 views....and yes tax preparers told me i couldnt do this the last 2 years because of loan payments etc

@nancybthescratcher6327 2 года назад

how you filed this

@TheBemused 2 года назад

I’d recommend you check out this video: m.ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-YdValSCc424.html This’ll let you know the different deductions you might qualify for. -Akeiva

@williamshouse8368 4 года назад

So, question! Do I report box 5 as income INSTEAD of putting it as a scholarship/grant money. I filled the info out on freetaxusa but they’re saying I’m not getting anything back... but I think that’s wrong.

@TheBemused 4 года назад

Unfortunately, I can’t give you personal tax advice, but I would maybe reach out to the staff at freetaxusa to see if they can help! -Akeiva

@williamshouse8368 4 года назад

The Bemused: Making Sense of Money 💰 thank you!

@folasadeadedapo 3 года назад

This is like a different language.

@TheBemused 3 года назад

It can definitely feel that way sometimes! Hope you were able to take away something new from the video. -Akeiva

@mms8477 3 года назад

I have no idea.

@TheBemused 3 года назад

Hopefully, you learned something from this video! -Akeiva

@seanlief4488 4 года назад

Hey my box 5 (scholarships and loans) is 10,000 while my box 1 is 8,000. I took out 4,200 in loans in that (2019) tax year as well. Does this mean I don't qualify?

@TheBemused 4 года назад

I can’t tell you whether or not you qualify. You will need to ask your tax professional. Just remember that the 1098-T doesn’t necessarily tell the whole story! -Akeiva

@mathewellison6110 3 года назад

i have a question i just did my tax return and my 1098t had box 1 and 2 blank but box 5 was 7k for 2020 do i go into my student account and add what my pell grant paid for ? i already turned it in but will admend it once it’s accepted.

@TheBemused 3 года назад

Payments made with free money (i.e. scholarships and grants) do not count toward qualified education expenses. You only get a credit for qualified expenses you paid out of pocket (or using loans). Hope that helps. -Akeiva

@mariamacruz107 3 года назад

So to qualify, we have to pay tuition out of our pockets? Fafsa grant dosent count?

@TheBemused 3 года назад

Grants & scholarships don’t count. Student loan and direct payments do. -Akeiva

@mariamacruz107 3 года назад

@@TheBemused oh okay I see! :)

@KevinK3vin0 3 года назад

@@TheBemused So what if I received the fafsa grant but still had to pay out of pocket, could I still qualify?

@TheBemused 3 года назад

Eligible education expenses paid out of pocket can be used in claiming education tax credits. -Akeiva

@onyxgames7802 5 лет назад

I posted a question on your,last video but I’m going to post it here too. I heard AOTC hasn’t been approved by Congress for this year, has anyone else heard this?

@seekinghimdaily92 5 лет назад

I haven’t seen anything about this.....do you have any more information?

@childishrare 4 года назад

So question if just receive the 1098-T form in the mail today. Are we supposed to file this form together with W-2 all together or how does this work because I already filed my W-2 and the 1098-T form came late as today, But do we file the 1098-T form anyway?

@TheBemused 4 года назад

I may be having some trouble understanding your question. If you’ve already completed and filed your tax return and forgot to take any credits or deductions that you are eligible for, you can amend your tax return. Hope that helps. -Akeiva

@childishrare 4 года назад

The Bemused: Making Sense of Money 💰 sorry that my question was as clear but since my return is already accepted by IRS I will have to wait until my refund is back then do a amend tax thing

@TasyausNorseman 3 года назад

Sis, I thought were about 16 😂😂

@tammeeDYLM 3 года назад

2020 1098-T --- Bx:5 is HIGHER than Bx:1. --- I have amounts in Bx:4 & Bx:6. --- Bx:4 amount is HIGHER than Bx:6. --- Bx:4 is LESS than Bx:5. I FEEL NAUSEOUS 🤢! I NEED A PAPER BAG AND YOUR MUCH NEEDED ASSISTANCE ON MOVING FORWARD. THANK YOU! 💚💛🧡

@TheBemused 3 года назад

That’s why the most important thing to focus on is not the 1098-T, butt billing and payment records from the college. -Akeiva

@TheBemused 2 года назад

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@ukrd94 4 года назад

I was told by the HnR block agent that you can't deduct expenses outside of the school such as books bough online. She also said I couldn't deduct my laptop that I needed to online classes. :| All together it was $1,000.

@TheBemused 4 года назад

Depends on which deduction you’re trying to take. Sorry to hear that! -Akeiva