My SIL had a few questions about the 1098-Ts that she received for grad school. I am trying to help her out, but want to see if anyone has any insight since I've never dealt with these before.
She attended grad school on a full scholarship + $14,000 stipend. She took one semester in 2016 and one semester in 2017. It appears like they listed the amount of her tuition and fees for both semester in 2016 (because the dept charges the spring 2017 fees in Dec 2016), while the stipend and the scholarship amounts are split between 2016 and 2017.
For example, her 2016 1098-T has 28,000 in box 2 (14,000 tuition & fees x2) and 21,000 in box 5 (14,000 scholarship + 7,000 stipend). Her 2017 1098-T only has 21,000 in box 5 (14,000 scholarship + 7,000 stipend).
Am I correct in telling her that she only needs to report and pay taxes on the stipend amounts since the tuition & fees and the scholarship are a wash? This would be Line 7 of the 1040, correct? It seems to me that it's just a weird timing issue on the forms because universities do school year vs calendar year for the tax payer.
She attended grad school on a full scholarship + $14,000 stipend. She took one semester in 2016 and one semester in 2017. It appears like they listed the amount of her tuition and fees for both semester in 2016 (because the dept charges the spring 2017 fees in Dec 2016), while the stipend and the scholarship amounts are split between 2016 and 2017.
For example, her 2016 1098-T has 28,000 in box 2 (14,000 tuition & fees x2) and 21,000 in box 5 (14,000 scholarship + 7,000 stipend). Her 2017 1098-T only has 21,000 in box 5 (14,000 scholarship + 7,000 stipend).
Am I correct in telling her that she only needs to report and pay taxes on the stipend amounts since the tuition & fees and the scholarship are a wash? This would be Line 7 of the 1040, correct? It seems to me that it's just a weird timing issue on the forms because universities do school year vs calendar year for the tax payer.