some of my scholarship money is taxable (used for room and board). Where do I report it as income?

Forum|Forum|1 year ago
February 17, 2025
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I have a 1098T and my parents are claiming the American Opportunity Tax Credit. I need to enter what portion of my scholarships/loans are taxable but dont see a place to add it in the income section

Best answer by Hal_Al

You don't add it in the income section.*

Enter in the Educational expenses and scholarships (1098-T) section of Deductions and Credits. Enter your 1098-T In the interview, you will reach a question, did you use any of the scholarship for room and board. This is how you designate the taxable portion. You should eventually reach a screen called "Amount used to calculate education credit" (or similar wording). Be sure the amount in that box is $4000. That will put the excess scholarship as income on your return (line 8r of Schedule 1).

Alternatively, you can use this short cut: Manually calculate the taxable amount of scholarship and enter the 1098-T, on your return, with 0 in box 1 and the taxable amount in box 5. Make no other entries.

*If you are using one of the download versions of TT, there is a way to enter it in the income section, but not with online TT.