How to file taxable scholarship?

Forum|Forum|5 years ago
February 10, 2021
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Hello! Graduate student not eligible for education tax break.

I have 1098T with box 5 exciting box 1 significantly. As far as I understand all scholarships\grants received in 2020 are taxable in my case. I do not understand how to file these. I uploaded 1098T in education section of TT and it never added to my income. W2 from my university only has my salary and not scholarships money.

Please help me to find where I should enter taxable scholarship?

Thank you!

linaj20201

I will recommend you to go through the Form 1098-T section manually to make sure all the questions are answered and checked correctly. If your scholarship amount exceeds the tuition paid, the program will place the difference over to line 1 of your Form 1040 as SCH wages.

To return to Form 1098-T section, here are the steps:

In TurboTax online,

Sign in to your account, select Pick up where you left off
At the right upper corner, in the search box, type in "1098t" and Enter
Select Jump to 1098t
Follow prompts

You receive a Form 1098-T when you paid tuition amount to your school. When you also received a scholarship that fully covers your qualified education expenses, it is like a wash. You do not get any tax break. If your scholarship does not cover all of your education expenses, you may still claim either a credit or deduction on your tax return. However, if your scholarship exceeds your education expenses, the difference will be treated as wages added on line 1 of your Form 1040. If you meet certain requirements, you may qualify for an education tax break including the American Opportunity Tax Credit AOTC, Lifetime Learning Credit or Tuition & Fees deduction. To see if you qualify, here are the links:

Employee

Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to the section you want to change; tuition, in your case (click edit next to the school name).