Scholarship

Forum|Forum|6 years ago
March 13, 2020
1 reply
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Hi!

I receive a scholarship from my work to pay for my college tuition. My college is an accredited four-year university, and I attend full time. The check they send is made out to my university, however, they sent it too late to apply it to tuition so I just received a reimbursement check. I did, however, apply some of it to books and things, but I would have used it for tuition if it had been sent in time. Do I need to pay taxes on it since it didn't arrive before tuition was due?

Not A Product Question

linaj20201

If you did not use it to pay for the tuition, it would be taxable to you. You may claim a tax break on the portion you used to purchase books and supplies.

To enter the books and supplies information in the program, here are the steps:

In TurboTax online,

Sign in to your account, select Pick up where you left off
At the right upper corner, in the search box, type in "1098t" and Enter
Select Jump to 1098t
On the screen, Now Let's gather XYZ's Additional Education Expenses
Follow prompts
Next screen, Your Education Expenses Summary, select Edit
Next screen Here's Your Education Summary, under Tuition, select Edit to enter tuition information

Carl11_2

Employee

Basically, the amount paid directly to the school is considered a scholarship. After entering the 1098-T exactly as printed, follow up screens will ask you for scholarships not included in box 5 of the 1098-T. enter the amount your work paid directly to the school. Then you'll be asked for qualified education expenses not included in box 1 of the 1098-T. enter the amount you paid for books and lab fees there.

The difference is taxable income to you and will be included in the total income on line 7 of your 1040, with the annotation "SCH" next to it. The "SCH" indicates that some of the income included in box 7, is taxable scholarship income.

taxmen2021

Hi ,

My daughter has received a scholarship from her work and payment has been made to her ( not to university). I will claim her as dependent on 2022 tax return. I have contacted the Scholarship office at her work and they replied in Massachusetts scholarships are not taxable and it will not be included on her W-2 form. Her total amount of scholarships from the University and the work will be less then I paid for her tuition.

Should we record the scholarship from her work on the tax return? On whose tax return should we record the amount not reported to us from work on any tax forms?

Thank you.