It depends. Sometimes the scholarship income is higher because some of the funds are used for other expenses such as room and board. If this is the case, then yes, some of the funds may be taxable. Scholarships are taxable if used for the following items: Room & board Travel & incidental expenses Any fees, books & supplies not required for classes Scholarships are not taxable if used at an eligible school for a degree if used for: Tuition & fees Fees, books, supplies needed for classes Scholarship or fellowship for services from: National Health Services Corps Scholarship Program Armed Forces Health Professions Scholarship & Financial Assistance program

Question

1098T box 1 shows $1144.00 box 5 shows $1797.90 since box 1 is less than box 2 it looks like its showing up as added income from scholarship. why? we didn't get that $

Forum|Forum|6 years ago
February 22, 2020
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TurboTax Deluxe Online

J

JotikaT2

It depends.

Sometimes the scholarship income is higher because some of the funds are used for other expenses such as room and board. If this is the case, then yes, some of the funds may be taxable.

Scholarships are taxable if used for the following items:

Room & board
Travel & incidental expenses
Any fees, books & supplies not required for classes

Scholarships are not taxable if used at an eligible school for a degree if used for:

Tuition & fees
Fees, books, supplies needed for classes
Scholarship or fellowship for services from:
National Health Services Corps Scholarship Program
Armed Forces Health Professions Scholarship & Financial Assistance program

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O

ourfamily123Author

the only expense I can think of was perhaps the extra funds were there for books. however, since box 1 is higher than box 2 turbo tax added the difference as added income. we never received any money or paid out of pocket. . the employer paid everything. we just get the 1098t. how can I fix this so its not added an addition $1700 as added income?

J

JotikaT2

If the employer paid for the education when you input your information, did you select the appropriate boxes in your input under the 1098-T form per the following example?

You should have select Employer-provided assistance and answered the questions as needed based upon the amounts reported.

Employer help