scholarships

Forum|Forum|6 years ago
April 20, 2020
1 reply
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Turbo tax is treating my scholarship as taxable income--in line 7 of my 1040. the scholarship is for tuition and fees and I'm a degree candidate at an eligible university

JotikaT2

It depends upon what the funds were used for.

Scholarships are taxable if 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

You can update your input by doing the following if you determine the scholarships should be allocated to tuition or room & board, as it was awarded to you:

Go to the Federal section of the program
Select Deductions & Credits
Select Expenses and Scholarships (Form 1098-T)
Select Edit to review your information for the 1098-T

You can edit your input for this section under the Scholarship tab as indicated below.

Scholarship adjustment

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acep1111Author

I'm using turbo premier, I do not have the window you show in the picture you pasted. The $47,997 in the second picture includes the $43,357 scholarship money reported in line 5 of the 1098-T. If you're not familiar with turbo premier, please seek help from one of your colleagues (when i posted my question I was asked to tell which software, the picture you posted seems to be from the online platform).

This is what I see: