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July 14, 2020
Question

Scholarships

  • July 14, 2020
  • 1 reply
  • 0 views

Why is Turbo Tax saying that I have to report scholarships received by my child as taxable income even if the amount of the scholarships does not exceed the amount of education expenses?

    1 reply

    Hal_Al
    Employee
    July 15, 2020

    -The usual explanation is you just didn't enter the expenses correctly. 

    -Another explanation is you used some of the tuition to claim the tuition credit, reducing the amount available to be covered by tax free scholarship.

    -Only tuition, fees, books and other course materials ate qualified expenses for tax free scholarships. Room and board and other personal expense, including travel, are not.

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