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Question

When I checked NO to the question "did you use any part of your scholarship to pay for room and board" the app says I owe taxes on my scholarship. Isn't that wrong?

Forum|Forum|3 years ago
January 29, 2023
2 replies
0 views

I didn't use my scholarship to pay for room and board. The app still says my scholarship is taxable. Is that a software glitch?

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Was scholarship greater than tuition?

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Q. The app says I owe taxes on my scholarship. Isn't that wrong?

A. No, not necessarily.

You enter scholarships. You enter Qualified expenses (QEE). The amount of scholarship that exceeds QEE is treated as taxable by TurboTax (and the IRS).

The scholarship for room & board (R&B) question is there to allow you to shift some of the scholarship away from QEE to free up more QEE for the tuition credit. There's no glitch.