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April 17, 2023
Question

I know scholarship "income" is taxable, but do I include room and board cost anywhere? Room and board aren't qualified even if it went straight to my school?

  • April 17, 2023
  • 2 replies
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2 replies

April 17, 2023

Scholarship in excess of tuition is taxable.

 

You can use your scholarship to pay for room and board, but you cannot deduct room and board from taxable scholarship.

 

Please note that you can use room and board to justify 529 plan distributions.

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Hal_Al
Employee
April 17, 2023

Q. Do I include room and board cost anywhere? 

A. Simple answer: no. As you said, room and board aren't qualified expenses,  even if it went straight to the school.

 

There are two circumstances when TurboTax (TT) allows you do enter R&B expenses: 1. After you have entered a 1099-Q for a non qualified (or partially non qualified) 529 distribution and your need to calculate the taxable portion of the distribution or 2. to designate some of the scholarship as taxable (by declaring it as used for non qualified expenses).