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February 12, 2021
Question

Anyone else confused about how to file taxable Grant's?

  • February 12, 2021
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Hal_Al
Employee
February 12, 2021

Taxable grants/scholarships are reported on line 1 of form 1040 with the notation SCH on the dotted line to the left of line 1.  It's important that it be reported there as it affects the calculation of a student-dependent's standard deduction.

 

To get it there, in TurboTax (TT),  it must be entered in the Deductions & Credits /Education / education expenses section of TT.  Do no try to enter it in the income section.

 

If your scholarships exceeds your qualified expenses, TT will automatically calculate the taxable portion. But sometimes it's easier to use a work around. The simplest thing is change the box 1 and box 5 numbers at the 1098-T screen to force the result you want. Special handling is needed if you're forcing some of the scholarship to be taxable so that you can claim the education credit.

 

For more specific instructions, reply back with your numbers and desired goal.