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February 20, 2021
Question

I am in the midst of completing my tax return but found out I could use my scholarship dollars toward room and board. How can I correct this before completion?

  • February 20, 2021
  • 1 reply
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Will I need to start all over to correct the scholarship and room and board info?

1 reply

Hal_Al
Employee
February 20, 2021

Scholarships are tax free if used for qualified educational expenses (QEE)(tuition, fees, books and other course materials).

 

If you designate some of the scholarship for room & board (non QEE), that portion of the scholarship will become taxable income.

 

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 scholarships. You will reach a screen did you use the scholarship for room and board.

 

If you reach the Scholarship screen sooner, in the interview (and you should), answer yes to get to the room & board question.