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I am a college student and I work as an RA for the university. This means that my room cost is covered as compensation. How would I include this on my taxes?

Forum|Forum|5 years ago
February 26, 2021
3 replies
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I am filing independently.

TurboTax Online

Best answer by Hal_Al

You may not get a clear cut answer.

The simple answer is it depends on how it was reported to you:

1. If on a 1098-T (box5) (and that's where it should have been reported) it is reported as taxable scholarship (Starting in 2022, on line 8r of Schedule 1, previously on line 1 of form 1040 with the notation SCH. ). In the TT interview, when asked if your box 5 scholarship paid for Room & board, answer yes and enter the amount.

2. If on a W-2, it's straight forward. You enter the W-2 and TT puts it on line 1 of form 1040 as wages.

3. If it's not reported on any IRS document; there are two schools of thought: (1). It's on-site housing at the convenience of the employer and does not need to be reported at all or (2) (and this is more likely correct) it's still taxable scholarship and is entered as such. In TT, after entering the 1098-T, you will be asked if you had scholarships not reported on a 1098-T. Answer yes, enter the amount, answer yes to the room &board question and enter the amount again.

AmyC

Employee

You can enter your room under other income. You can follow the steps in Where do I enter scholarship income? You can change SCH to RA compensation.

Also, check your 1098-T. It may be listed in box 5 as a scholarship for room and board. In that case, the program may determine the taxability for you so that you don't need to add it under other income. Instead, it would be marked as SCH income. Which is fine.

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Carl11_2

Employee

Typically, that would be included in box 5 of your 1098-T. If it's not, then your best bet is to log into your college account, go to the financials section of your account and see exactly how they are reporting the compensation. It's also possible that you "may" find a W-2 or something else other than a 1098-T with that compensation on it. But you really can't know until you check the financials section of your account.

Hal_AlAnswer

Employee

You may not get a clear cut answer.

The simple answer is it depends on how it was reported to you:

1. If on a 1098-T (box5) (and that's where it should have been reported) it is reported as taxable scholarship (Starting in 2022, on line 8r of Schedule 1, previously on line 1 of form 1040 with the notation SCH. ). In the TT interview, when asked if your box 5 scholarship paid for Room & board, answer yes and enter the amount.

2. If on a W-2, it's straight forward. You enter the W-2 and TT puts it on line 1 of form 1040 as wages.

3. If it's not reported on any IRS document; there are two schools of thought: (1). It's on-site housing at the convenience of the employer and does not need to be reported at all or (2) (and this is more likely correct) it's still taxable scholarship and is entered as such. In TT, after entering the 1098-T, you will be asked if you had scholarships not reported on a 1098-T. Answer yes, enter the amount, answer yes to the room &board question and enter the amount again.