Question

Scholarship Exceeds Tuition Paid. It's asking for W-2 information on that for local taxes.

Forum|Forum|5 years ago
March 3, 2021
1 reply
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Hello,

My university was generous enough in Spring Semester 2020 to offer students a $500 stipend for living expenses because of COVID-19. I received that stipend and it is noted on my 1098-T. However, because I graduated in Spring 2020, and all of my payments for Spring Semester 2020 were paid in 2019, I have 0 expenses and a $500 scholarship. I understand this counts as income and is taxable and filled out the expenses questions and American Opportunity Credit as asked. I am not claimed as a dependent.

I got to filling out local taxes, and my University is located in a city that has a local city tax. It's now asking for my employment history with "Scholarship and fellowship grants" and where my work station was located. I obviously didn't work for the grant/stipend they gave to us. It's asking for information like work location from my W-2 and how many hours I worked for the stipend. I'm not sure if I've entered something incorrectly, or if I should consider the 1098-T as a W-2 for these purposes, but then how do I answer the employment questions? I am thoroughly confused and would appreciate any help!

TurboTax Home & Biz Windows

T

ThomasM125

The income from your stipend is considered wage income and is reported as such on your federal tax return. As such, the city will likely consider it taxable income so you do need to answer the questions.

I would suggest you answer the questions as factually as you can. For instance, if you didn't work to earn the stipend, you can enter 0 for the hours worked. The location would be the address of the school.

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