Scholarship income, studying in the UK

Forum|Forum|5 years ago
April 12, 2021
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I have a bit of a tricky situation. I received a scholarship for $30,000. This amount was transferred to my personal account in September 2020. The majority of this will go towards paying tuition fees. I am currently studying full time in the UK at an approved university by the US (they are registered and accept US federal loans). Unfortunately, as it is not a US university they do not issue 1098-t forms.

During the 2020/2021 tax year, I have paid $18,727.83 towards tuition (I have one more installment of approximately $9,600, which will be paid at the end of the month). I am wondering how I should document my scholarship and tuition in this circumstance. At the moment I have reported it as follows:

Other scholarships/grants/fellowships: $30,000

1098-T:

Box 1 - $18,728

Box 7 - Checked

Box 9 - Checked

I have a few specific questions but any other general guidance would be helpful:

1. My main concern is entering the 1098-t form without actually having it. Is this allowed? If not, how do I report this?

2. Should I add the grant amount to box 5 scholarships and grants even though the money was paid from my personal account?

3. Should I be reporting the entire $30,000 as income for 2020/2021 even though Part of it will be used to fund my expenses in tax year 2021/2022?

Thanks in advance for any advice.

Not A Product Question

Best answer by ReneeM7122

Yes, you can create a mock 1098-T, as long as your University is eligible. Please see this thread. Go to the more recent posts where there are links that show the FAFSA codes and steps on how to enter the 1098T in TurboTax.

You should NOT report the entire $30,000 as income. Tuition is deductible. Here is a TurboTax article that explains what can be excluded and what should be included in income.

@Jessiwinters

ReneeM7122Answer

You should NOT report the entire $30,000 as income. Tuition is deductible. Here is a TurboTax article that explains what can be excluded and what should be included in income.

@Jessiwinters

JessiwintersAuthor

Thank you for your response @ReneeM7122!

Just one quick follow up question because I find this situation a bit confusing. As a portion of the $30,000 will be used to cover my fees in 2021, should I not report that as received until 2021? Meaning that I would report that I received a grant of $20,000 vs $30,000 (because 1/3 of it will be used in tax year 2021/2022)?