1098-T and scholarships

[GreggHorv]

Filed my taxes and entered my son's 1098-T. It said because of his scholarship it was seen as income so he would need to file it on his own tax return. So we started another return. He has no other income other than the scholarship but when I go to input his 1098-T it only gives me an estimated household income drop down and marital status box. Have no idea what to do here.

[GreggHorv]

[MargaretL · Accepted solution]

Your son may not have to file his own return since you say that scholarship is his only income. 

If the excess scholarship is his only income and it is less than $12,000 for the year, your son is not required to file at all.  

If a student's earned income (such as W-2), when added to scholarship exceeds $12,000, then he is required to file his own tax return. If he is required to file, be sure that he indicates on his tax return he is being claimed by someone else. 

As to the screenshot, you seem to be in our taxcaster website.. an area where we estimate the income...not in the TurboTax online for preparing the return. Please use this link to start a return, if your son must file. Your son won't get anything back since all he is doing is reporting excess scholarship as income (again, if he is required to file at all).

I'm also enclosing filing requirements for dependents if you'd like to read more. 

[GreggHorv]

His total scholarship for 2018 was only $7000 all of which was used towards tuition. And he has no other income so you're saying I don't need to file for him, correct? Thank you for your response, but I assure you this screen shot is directly from turbo tax online while I was filling out his return. If you go to deductions and education one of the options is 1089-T when I click to review it takes me to the screen I captured. Thanks again for your help.

[MargaretL]

Thank you for assuring me about the screenshot, I did not receive the same result when I tried to duplicate it... but no matter. Since the entire scholarship was used towards tuition, your son does not need to file 1098-T nor his return. There is nothing taxable there. Good luck in 2019!

[GreggHorv]

Many thanks!! Good luck to you as well!

[MargaretL]

Thank you very much 🙂