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March 21, 2020
Question

Scholarships are not taxable in Alabama, but TurboTax is filing my scholarships as taxable income on my state return. How do I change this?

  • March 21, 2020
  • 1 reply
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1 reply

KathrynG3
March 21, 2020

Scholarships could be taxable if they exceed qualified education expenses. You may be thinking of distributions from Alabama College Counts 529 funds, which would not be taxable. See 2019 Alabama Form  40 Tax Booklet page 7.

 

Click the link for more details on qualified education expenses

2019 IRS Publication 970 Tax Benefits for Education