<p>I am completing verification for my FAFSA, and on a section called "Grant/Scholarship Aid" in the description it says, "A student reports only the amount of grants and scholarships received that is taxable income." I didn't file taxes for myself because I didn't have a job so I assumed I didn't need to. </p>
<p>On form 1098-T, it says on box 1, "Payments received for qualified tuition and related expenses" - $10,652.40. And box 5, "Scholarships or grants" - $21,960.46.</p>
<p>The deadline for verification is June 21st, and I just called and they said that I could put for the section $0 and submit a non-filer form because I didn't file taxes. She said I could then later send in my taxes if I find out I actually have to pay taxes. Well, what happens if I DO need to pay taxes? I am asking because on my FAFSA I put for "Student Filed 2011 Income Tax Return?" NOT GOING TO FILE and also I put $0 for "Student's Grant and Scholarship Aid Reported in AGI". </p>
<p>Will I be punished or anything by my school or IRS for having not filed taxes but later filing them out and also for putting $0 on FAFSA for ""Student's Grant and Scholarship Aid Reported in AGI" when it could potentially be $11,308.06 (21,960.46 minus 10,652.40) as taxable income for verification?</p>
<p>It shouldn’t affect your EFC as taxable scholarships and grants are not counted against you in the EFC formula. But if it does turn out you do have to file a tax return, you are of course very late, so in addition to owing some taxes there will be some interest and penalties. </p>
<p>You really need to get on the ball and get this sorted out ASAP.</p>
<p>ok, just called again and they said to basically put the $11,308.06 (21,960.46 minues 10,652.40) on my verication for the section “Grant/Scholarship Aid (taxable income)” and to fill out a non-filer form.<br>
They asked me also to talk to a tax expert to determine if I actually file taxes. Does anyone know the fastest way to do the tax stuff?</p>
<p>I am assuming you are a student. Tell you parents about this and get in touch with a CPA. The tax and penalties should not amount to that much.</p>
<p>1098Ts can be incorrect for tax purposes, especially when the box is checked saying some of the amounts are for spring semester. Do you have copies of your paper bills for fall and spring. If not, you can probably still access them on your student portal. Make a spreadsheet of the dates and amounts that scholarships/grants were credited to your account and all charges were posted to your account. You are only concerned with credits and charges posted in 2011 for 2011 taxes. An accountant would probably need the bill information anyway.</p>
<p>Is this IU-Bloomington? Looking at the COA it looks like the scholarship/grant amount and the tuition amount are both for the full school year if you are in-state. How much you report for taxes for 2011 comes down to when amounts were billed and credited.</p>
<p>Have you involved your parents in this yet? You mentioned their taxes in your other thread. Who do they use for taxes or do they do them themselves?</p>
<p>D’s 1098T has never been even close to accurate. I ignore it, and instead work from all the payments and credits actually posted to her student account for the year.</p>
<p>Call your local IRS office and see if they will sit down with you and give you some help. If that 1098 form is showing a full years’ amount when only a half should be relevant, call up the school and let them know. Tell them you are going to the IRS with this, and you need an accurate form. Let the agent who assists you know the situation if it is not resolved by then.</p>
<p>Question: Are you on a full-ride? If so, you’ll probably need to file a tax return to report the room and board as income.</p>
<p>The school is (unfortunately) not required to issue a 1098T that correctly allocates payments. I have no clue why the IRS thinks it is useful, but D’s 211 1098T included amounts all charges posted to her student account, though some were for fall 2010, some were charges (and scholarships) for spring 2012, and a whole host of non-qualifying (for tax purposes) expenses like charges for rec center (noncredit) classes & student health center charges for services. After conversations with the school’s bursar, and long reads through the tax writeups, and a conversation with F.A. officer, it became clear that the 1098T was not a useful place to start, and the F.A. office does not attempt to reconcile the numbers on this for any of the F.A. process. The bursar’s office also confirmed that they do not match payments or credits to any specific charge – it all goes against the balance in the account. </p>
<p>What did help:<br>
Printing out a list of all charges, payments, and scholarships posted for the calendar year, and entering them in a spreadsheet. Then going through and tagging each one with the category (tuition & allowable fees 2011, R&B, scholarship, 529payment, Mom&Dad payment, prepayments for 2012spring, precharges for 2012 spring.) Then I added in lines for all the expenses (allowable for tax purposes) like the textbooks and school supplies, and categorized them as books. Totaled the categories.</p>
<p>First applied scholarship funds to tuition.
Then applied 529 funds to Room & Board. (Since they’re allowable expenses for the 529 but not for the tax credit)
and so on. </p>
<p>It was a pain, but it was the only way I’ve been able to get to the bottom line to complete the taxes. </p>
<p>Yours may be simpler if you’re on a full-ride (or close to it.)</p>