Question

Do we/son need to claim the $2000 private donor scholarship we got refunded from his comm college? Tuition paid in full by CA Promise Grant. If yes, how? No 1098-T rcvd.

Forum|Forum|7 years ago
June 3, 2019
1 reply
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I can't find a place in the Tuition or Scholarship area to claim this refund.

TurboTax Free Edition Online

Employee

Yes, you need to claim it. We'll ask about scholarships and other financial aid when you get to the Education section in Deductions & Credits. When you enter the $2,000 scholarship, TurboTax will carry it to Form 1040, line 1 with SCH in front of the amount to indicate it was a scholarship, fellowship or grant money that was not used for qualified education expenses.

On the left side navigation bar, click on Federal.
Click on the Deductions & Credits tab.
Scroll down to Education (if Education is not there, click on Check for more tax breaks).
Select Expenses and Scholarships (Form 1098-T).
On the Do you want to enter your higher education expenses? screen, select Yes.
Continue with the onscreen interview until you get to the Scholarships and Financial Aid screen.
Enter your $2,000 private donor money.
Continue with the onscreen interview until complete.

See the screenshot below.

D

DS_60Author

Thank you for your reply. However, my main question was not answered. I had no issue with acknowledging (as you informed) that he received this $2000 private scholarship that was designated for "tuition & books". But because the Community College grant paid for his tuition in full we were unable to actively use this scholarship. I believe we need to account for this as "income", but I do not know where or how. I read it cannot be under a 1099-Misc because we did not receive a 1099-Misc from donor. They mailed a check directly to his college which they accepted and deposited into his school account, and later the school refunded it back to my son's personal bank account. I'm not sure if it is classified as "unearned income"? Any advice is appreciated. Thanks