Skip to main content

1 reply

Hal_Al
Employee
February 14, 2021

It's not.

Box 5 of the 1098-T may be getting added, or more likely, the difference between box 5 and box 1 (assuming box 5 is the higher number).

 

Scholarship money that is not used for qualified educational expenses is considered taxable income.  TurboTax will consider the difference between box 5 and box 1 to be taxable unless you enter additional qualified expenses (e.g. books).  Line 1 of form 1040 is the place taxable scholarship is entered. It is added to any wages you have. Notice to the left of line 1, on the dotted line, is the code "SCH" with the amount of taxable scholarship that is included on line 1.