doing tax, question on 1098-t

[ER_Hopeful]

doing one of relative's tax return. She got a 1098-t and box 5(scholarship) has an amount (pls see attached.), looks like it's treated as income because it increased her tax amount. Just want to double check with the folks here.

backgroun info, may not make any difference.
she is in the military and was deployed to a combat zone a few years ago. After returning to the U.S., she starting attending Devry and her tuition is footed by the govt.

She has very low income now and she owes close to $1700 on the federal, does the govt offer any payment plans?

thanks.

 

[AllDone]

Her education credit is based on box 2 minus box 5, so her credit is $0. Box 5 would be taxable (IIRC) only if it exceeded box 2.

Yes, she can arrange payments. Have you checked to see if she is eligible for an EIC?

 

[Bir48die]

Her education credit is based on box 2 minus box 5, so her credit is $0. Box 5 would be taxable (IIRC) only if it exceeded box 2.

Yes, she can arrange payments. Have you checked to see if she is eligible for an EIC?

I assume you've already calculated and entered in the adjustment in Box 6? That part is very important.

 

[RE2Boys]

Adjustments to Scholarships or Grants For a Prior Year
Box 6 of Form 1098-T reports adjustments made to scholarships or grants reported on a prior year Form 1098-T in Box 5. The amount reported in Box 6 represents a reduction in scholarships or grants reported for a prior calendar year. The amount reported in Box 6 for adjustments to scholarships or grants may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. See IRS Form 8863 for how to report these amounts.

Also see" https://www.taxact.com/support/1120...-and-box-6-adjustment-and-recapture-of-credit

 

[ER_Hopeful]

I assume you've already calculated and entered in the adjustment in Box 6? That part is very important.

box 6 has been populated by school already.