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April 12, 2025
Question

I don't see "Scholarships and Grants" option under "Education" in "Deductions and Credits". I want to report 1042-S

  • April 12, 2025
  • 1 reply
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1 reply

AmyC
Employee
April 12, 2025

The Scholarship income would be treated as EARNED income. Follow these steps:

  1. Open to federal  Deductions & Credits
  2. Locate EDUCATION
  3. Select Expenses and Scholarships
  4. Tell the program you don't have a 1098-T, that you have an exception, don't enter any expenses, enter the excess scholarship on the screen that asks if you received a scholarship you have not yet reported.

If you had tax withheld:

  • under deductions and credits
  • other income taxes, start/ edit
  • locate other income taxes paid in 2024
  • select withholding not already entered on a w2 or 1099

If your income is exempt under a treaty, see Resident Alien Claiming a Treaty Exemption for a Scholarship or Fellowship:

 

Subtract the income

  1. Open to federal income
  2. Locate Miscellaneous Income, 1099-A, 1099-C, Start
  3. Scroll to the bottom
  4. Other reportable income, Start
  5. Other taxable income?
  6. Select YES
  7. Description exempt under Treaty US -XX article ???
  8. Amount, enter your negative amount, use a minus sign in front.
  9. Continue
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