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Question

Why is my 1098-T scholarship money being counted towards my income? It is supposed to be tax free tuition assistance.

Forum|Forum|2 years ago
April 3, 2024
1 reply
0 views

I am a scholarship student. I get tuition assistance via pell grants and the school I go to. That money is a qualified education expense. Why is it being counted as income I need to be taxed on?

TurboTax Deluxe Online

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Scholarships that paid for non qualified expenses are taxable. Tuition, fees, books and computers are qualified expenses. If box 5 of your 1098-T is more than box 1, TurboTax will automatically treat the difference as taxable scholarship income unless you tell it differently. Room and board are not qualified expenses for either a tuition credit or tax free scholarship.