How to use tax form 1098 t

how to use tax form 1098 t

How do I use the Form 1098-T on my tax return?

I know that others had asked this question, but none of the answers gives me direction about how I should handle my case. I received a Form 1098-T from my. show more I know that others had asked this question, but none of the answers gives me direction about how I should handle my case.

I received a Form 1098-T from my school as document to use (maybe) for my tax return. I will filled under status Join return. I made $29K on my W-2. On the 1098-T, the Box-2 is empty, but in the Box-1, there is $1500, while in Box-5 there is $5K for scholarship.

Here are my questions:

1. Do I have to use this form while filing my tax return? The school had sent a copy to IRS already.

2. When I file, do I report the amount paid $1500 as amount paid or the difference between $5000 and $1500 which is $3500?

3. I

am using Turbo Tax, and it is considering the $3500 as taxable income and adding it to my $29K. I did not received any amount/reimbursement for $3500, but roughly about $1600 which I used for other expenses related to my education. I've also paid out of my pocket around $850 to save my classes when the financial aid was not available to pay for my courses.

Update:

As suggested, I did use Turbo tax to input the information from Form 1098-T. My main concern is that why is the difference between $5000 and $1500 is. show more As suggested, I did use Turbo tax to input the information from Form 1098-T. My main concern is that why is the difference between $5000 and $1500 is considered as taxable income. I think it should be $1500 which I used to by books and pay exam fees.

What will happen if I don't input the form 1098-T information on my tax return? I do know that the school has sent a copy to IRS.

Source: answers.yahoo.com

Category: Taxes

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