Skip to main content
February 25, 2020
Question

Tuition/Scholarship and who claims

  • February 25, 2020
  • 2 replies
  • 0 views

We are claiming our daughter as a dependent.  She's 20 and in her Junior year of college.  Tuition is approx. $38,000. She received a scholarship for $16,000.  There is no place to enter the tuition, so TurboTax is telling me her scholarship exceeds expenses and she has to pay $720!  She only earned $760 last year.  Do I even have to file for her? 

    2 replies

    Hal_Al
    Employee
    February 25, 2020

    She does not need to file a tax return. Her income is too low. Even if she does file (to get a refund of withholding), you do not enter the 1098-T or any thing about education on her tax return.

     

    Since she is your dependent,  her 1098-T goes on your return.  If box 1 does not accurately show the tuition you paid; underneath box 1, In the 1098-T screen, click on the link "What if this is not what I paid the school" under box 1. You will then be able to enter your actual amounts. This is the amount that TT will used to calculate your credit or deduction. 

     

     

    February 25, 2020

    As your daughter is your dependent, you can claim her education credits. As her tuition is way above her scholarship, her scholarship is not taxable. You do not need to enter the scholarship on her own tax return.

     

    She arned $760 last year. If this is wages reported on form W-2, she is not required to file a tax return. However, if she had taxes withheld, she can file a tax return to obtain a refund of taxes withheld.

     

    If the $760 is reported on form 1099-MISC, then she is required to file a tax return.

     

    If she files a tax return, she has to indicate that she can be claimed as a dependent by someone else.

     

    On your tax return, you should enter her form 1098-T, follow the TurboTax interview and TurboTax will maximize your education credits for you.

     

    To enter your form 1098-T in TurboTax, follow these steps:

    1. Open your tax return
    2. Click on Federal in the left panel.
    3. Click on Deductions & Credits at the top
    4. Scroll down to the Education section. Click Show more 
    5. Select Start next to Expenses and Scholarships (Form 1098-T)
    6. On the next page, click on Add a Student. Or if the student has already been added, click on Edit next to the name of the student. After a few screens, answer Yes on the page Did [student] get a 1098-T for the year 2019?
    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"