Skip to main content
February 22, 2020
Question

On our 1098-T, tuition and expenses are five times the amount of scholarship money received, yet TT says that the scholarship money is treated as income. Math error?

  • February 22, 2020
  • 2 replies
  • 0 views
No text available

2 replies

February 22, 2020

Probably not.  

 

Scholarships can either be taxable or not taxable depending upon how the funds were used.  I recommend reviewing the answers to your questions in the education input section to make sure you have answered all of the questions according to how the funds were used.

 

Scholarships can be taxable if they are used for the following items:

  • Room & board
  • Travel & incidental expenses
  • Any fees, books & supplies not required for classes

 Scholarships are not taxable if used at an eligible school for a degree if:

  • Tuition & fees
  • Fees, books, supplies needed for classes
  • Scholarship or fellowship for services from:
  • National Health Services Corps Scholarship Program
  • Armed Forces Health Professions Scholarship & Financial Assistance program

 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
February 22, 2020

on the 1098-T, if Box 5 exceeds Box 1, the difference is taxable ON THE STUDENT'S RETURN.