I have a form 1098-T. Box 2 is $2079.00 and Box 5 is $4090.00 from a Pell Grant. Do I have to include the difference between the two of $2011.00 as income? Asked the IRS and they said no, but still feel funny about it.
State/Country relating to Question: Texas
Hello and thank you for using Just Answer. No you do not have to report the difference between Box 2 and Box 5. Use the amount reported in Box 2 to claim the educational tax credit. You can read more about Form 1098-T at www.irs.gov/pub/irs-pdf/i1098et.pdf .
10 years self employed , Income Tax Preparation & Representation