What does an amount in Box 5 mean?
Box 5 ("Scholarships or grants") shows the net amount of certain forms of educational assistance that were received or applied to your student account during the tax year (January - December), regardless of the quarter for which the funds originally were intended. For example, if you received a check for Fall 2006 Pell Grant in 2007, the amount of the check would be added into Box 5. Note that the amount in Box 5 may include fee payments and other credits, as well as checks. Any subsequent adjustments or reductions to educational assistance that occurred in the same tax year are summed into the amount. The net amount is sent to the IRS.
The IRS states that there is "no double benefit allowed." This means that if you pay tuition with certain forms of educational assistance, on which you do not pay taxes, you must reduce any education credit you claim by those amounts. See "No Double Benefit Allowed" in Chapter 2 (Hope Credit), or "No Double Benefit Allowed" in Chapter 3 (Lifetime Learning Credit) of Publication 970: Tax Benefits for Education [download] for more information. Reportable forms of education assistance are not limited strictly to scholarships and grants, but may include funds received from employers or sponsors.
On the reverse of the student copy of your 1098-T, you will find the "financial supplement," providing more detailed information. Part 2 "Scholarships or Grants," displays relevant educational assistance broken down into the following categories (if applicable):
- Grants and Scholarships
- Fellowships, Traineeships and Stipends
- Outside Sponsored Awards
- Third-party Billing Arrangements
- Tuition/Fee Remissions
- Waivers and Exemptions
Access your record at UCSB's Tax Credit Reporting Service (TCRS) http://www.1098t.com/ to view and print copies of your 1098-T and "financial supplement." Also at this web site, the educational assistance categories in Part 2 are linked to more information. For example, just click on a link for "Grants and Scholarships," and you will see the details (dates, descriptions, amounts) for all transactions that were compiled into that category, such as: