Question

1098-T question when scholarship is greater than tuition paid

Forum|Forum|4 years ago
April 13, 2022
2 replies
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My daughter is on an ROTC scholarship. The scholarship exceeds the tuition by about $13,000. The majority of the excess ($11,000) goes to pay room and board (she never "sees" this money, the university takes it before it goes into her student account). The remaining $2000 is a stipend use for living expenses.

Do we claim the entire excess ($13,000) as taxable income or only the portion she actually gets to spend ($2,000)?

Thanks in advance!

TurboTax Home & Biz Windows

P

Psychprof

Room and board is not tax-exempt.

https://www.cnbc.com/2019/03/11/you-might-owe-taxes-if-you-got-a-scholarship.html

KrisD15

The student would need to claim the 13,000 however don't forget about any books and supplies she may have needed to purchase which would not be included in Box 1 as tuition. Those expenses can be used to offset scholarship income.

Room and board can offset a 529 distribution (1099-Q) but not scholarships.

@carolynburns3

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