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MrSouth_Carolinian

Question

Should I report US Army HPSP scholarship for tuition under scholarship, grant?

Forum|Forum|1 year ago
March 6, 2025
1 reply
0 views

No text available

Employee

It depends on what you mean by "report" and "under scholarship/grant". The HPSP scholarship funds that pay for the cost of tuition are not taxable.

But, the monthly stipend provided to scholarship recipients is considered taxable income by the IRS.

The scholarship money is usually sent directly to the school and is already reported by the school in box 5 of the 1098-T. If you get a 1098-T with tuition in box 1, but the HPSP is not shown in box 5, you cannot claim that tuition for the tuition credit.

what does this mean exactly? If the HPSP scholarship is not in box 5 of the 1098-T does it need to be claimed elsewhere?

Employee

Q. What does this mean exactly? If the HPSP scholarship is not in box 5 of the 1098-T does it need to be claimed elsewhere?

A. Yes. After entering the 1098-T, you'll encounter a screen "Did (student's name) receive a scholarship or grant in 2024?" Answer yes.