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April 5, 2024
Question

Scholarship for Graduate School

  • April 5, 2024
  • 1 reply
  • 0 views

My son received a 1098-T for the scholarship amount.   He received a full scholarship for his graduate program - Classes were on-line and he lived at home.   He did work for the atheltic department during school under the progam with little pay but that was on a W-2.

 

 Do I need to enter this into TT?  Is this amount taxable?

    1 reply

    Hal_Al
    Employee
    April 5, 2024

    Q.  Do I need to enter this into TT? 

    A. You do not enter his taxable scholarship, on your tax return, even if he is your dependent.

     

    Q. Is this amount taxable?

    A. Yes. If his scholarship  exceeded his qualifying expenses of tuition, academic fees, books & course materials, including a computer (but not room, board, transportation, student activity fees, insurance etc.); the excess is reported as taxable scholarship on THE STUDENT’S return.

    eaker619Author
    April 5, 2024

    His program remission is $28,000

    $5000.00 stipend per year

     

    So his scholarship amount on the 1098-T is $7101.00 for the school year 22-23

     

    So do I need to enter this in TT

    Hal_Al
    Employee
    April 5, 2024

    It's not clear what's going on. 

    "So his scholarship amount on the 1098-T is $7101.00 for the school year 22-23"

    Does that mean $7101 was in box 5? What was in box 1?

     

    "$5000.00 stipend per year"

    Was that part of the $7101 or something separate? How was the $5000 reported to him (any form?)