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undergraduate student's Form 1098-T box 2 and box 5 questions

If Form 1098-T : box 2 qualified tuition exp. is 11,000 ; box 5 scholarships/grants is 16,000, where to input in Lacerte? If Form 1098-T : box 2 qualified tuition exp. is 16,000 ; box 5 scholarships/grants is 11,000, where to input in Lacerte?


    We have always just left it off if scholarships are greater than the "Qualified" expenses shown in box 2.  Room and board expenses are not qualified expenses and thus not eligible for the credit calculation.  Scholarships, on the other hand, can be applied to room and board, thus resulting in scholarships reported in box 5 being greater than qualified expenses in box 2.

    • What do you mean by "left it off"?  Do you mean not reporting anything at all from that 1098-T in the 1040?  In my case, I already efiled my federal return.  Now I just got a 1098-T, and box 2 is $3,645.90 and box 5 is $3,719.90  So my box 5 is greater than my box 2. The IRS hasn't processed my 1040 yet but I am trying to find out if I wil need to ammend the return with the new information from the 1098-T and if I do, how exactly I handle the situation of box 5 being greater than box 2. Thanks!
    •  This is not an appropriate forum for laypeople to ask questions regarding their personal tax situations.  If you're unsure how to handle something on your own return, I suggest discussing it with a competent professional familiar with your specific situation.
    • Just another reason to require Lacerte account number to get into this forum!!

    So in one case, tuition exceeds scholarship assistance.  In the other case, something funny happened or years got bollixed or whatever, and the client actually got more in assistance than the tuition.

    The first situation is easy:  net the figures, and the tuition net of financial assistance is what goes in the input field for "spent on tuition" (or whatever it's called).

    In the 2nd case, I'm not sure if you have to report the net as miscellaneous income (possibly on Line 21 of the 1040?) or if you just leave it off entirely.

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