Received a 1098-T for a scholarship paid after child graduated college

Forum|Forum|3 years ago
April 7, 2023
2 replies
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My daughter graduated college in 2021. During her last semester in 2021 she worked at a Covid-19 vaccination fair as a nursing student and received a $500 scholarship for her time. The scholarship was not paid until 2022, after she graduated. The 1098-T does not have any qualified tuition expenses listed in box 1. The only box populated is box 5, with the $500.

The $500 was used for tuition expenses that were paid the previous year. Do I need to enter the $500 from the 1098-T in her return? She received the 1098-T, but the tuition was paid by her parents.

ShirlynW

It depends on what the 1098-T reports. The best advice is, to have your daughter to enter Form 1098-T into the TurboTax program, as well as all of her tax documents. TurboTax program will inform her if you are eligible for any credits and/or if she needs to claim any tax-free assistance as taxable income.

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Hal_Al

Employee

Q. Do I need to enter the $500 from the 1098-T in her return?

A. Yes. The $500 is taxable.

"Generally, you can't exclude from your gross income the part of any scholarship or fellowship grant that represents payment for teaching, research, or other services required as a condition for receiving the scholarship." (Pub 970, pg. 6)