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March 9, 2023
Question

My 1098-t college box 1 is $27930.50 and my scholarships box 5 is $19750. Why is Turbotax treating the scholarship as taxable income

  • March 9, 2023
  • 1 reply
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none of the scholarships were used for room or board

1 reply

Hal_Al
Employee
March 9, 2023

You've most likely entered something wrong.

 

One possibility: If you are claiming the Lifetime Learning Credit (LLC), TurboTax will assign $10,000 of the tuition for the LLC.  That means there's only $17,931 of tuition for the Scholarship. So, $1819 (19750 - 17931) of the scholarship will be taxable.