What happens if I leave out one of my wife’s 1098-T forms…

Tilden said:
@Jordy
The problem is that tax years go by when payments happen, not when classes take place. If tuition was paid in 2023, it can’t be used to offset a scholarship that was received in 2024.

I get that, but scholarships aren’t always applied the moment tuition is billed. Sometimes the school’s timing messes with how it looks on the 1098-T. If the school credited the scholarship late, it might make it seem like there’s extra money when there really isn’t.

@Jordy
I checked her old 1098-T forms:

  • 2023: Tuition paid ($41,070), scholarships ($40,104)
  • 2022: Tuition ($38,575), scholarships ($38,096)
  • 2021: Tuition ($45,172), scholarships ($36,520)

The numbers don’t really line up for 2024. She never got federal aid—her scholarship was through a program for university employees’ families.

IRS secret: The 1098-T is not used to track income. It’s really just for education credits. But if the IRS audits someone for an education credit, they can use it to find taxable scholarships too. So while it’s not always checked, it’s still best to report everything.

They don’t always catch it right away, but after a few years, they start sending letters. I once forgot to file a 1099 for almost two years and didn’t hear anything until later.

Yeah… don’t mess with this unless you want a surprise bill from the IRS later.