Skip to main content
April 14, 2025
Question

scholarsip income

  • April 14, 2025
  • 1 reply
  • 0 views

I have an inidividual  who received scholarships 30, 000 greater than the tuition listed on the 1098T form.  is the excess scholarship amount taxable?  She is a doctoral student and not some ones dependent.

    1 reply

    Hal_Al
    Employee
    April 14, 2025

    Q. Doctoral student  who received scholarships $30, 000 greater than the tuition listed on the 1098T form.  is the excess scholarship amount taxable? 

    A. Yes. 

     

    Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free.  Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Room & board are not QEE.

    If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses.