For 2016 scholarship, the taxable amount is over $6300 which I now realized that I was required to file.Do I use the amended tax return to file for 2016 or what do I do?

[tax-problems]

I didn’t know that I was supposed to file for my scholarship. For 2016 scholarship, the taxable amount is over $6300 which I now realized that I was required to file. So do I use the amended tax return to file for 2016 or what do I do? In 2016, I didn’t have any other incomes other than $2.63 from savings and around $8000 taxable amount of scholarship.

[Vanessa · Accepted solution]

If you have not yet filed a return for 2016, you will just need to file one using a downloaded version of TurboTax which can be purchased through https://turbotax.intuit.com/personal-taxes/past-years-products/.  Every year tax laws change, therefore you will need to use the 2016 version to file your 2016 taxes. 

If there was an error on the return you filed, then yes, you will need to file an amended return to fix the error.

Click here for instructions on how to Amend Your Return. You will need to download the 2016 version of TurboTax to file this amendment. You will see your refund/amount due set back to $0, you will then be able to enter your missing scholarship information.  Your amended return must be paper filed.  When you get to the end, it may "appear" that you can e-file it, but it must be mailed.  It will take 10-14 weeks for the IRS to process your amended return.  Once submitted you can check the status of your amended return here Where's My Amended Return

Either way, you will need to print and mail your return. 

[tax-problems]

Ok.. so in 2016 I don't have any other incomes other than the scholarship and $3 interest from savings. Since I didn't know I need to file for scholarship, so I didn't file any taxes in 2016. In this situation do I just file the form from the link you sent me? Do I need any other forms? Do you know the penalties for my situation? Like how much do I need to pay now if my taxable amount in 2016 is $9800 including the penalties and stuff?

[Vanessa]

Your taxable income probably was not $9,800 if you had only that much in scholarship income.  Most people at least get the standard deduction of $6,300 (2016) and then if you were NOT claimed as a dependent you would have had an exemption of $4,050.  Which would leave you with no taxable income.  You will also have to determine how much was used for qualified education expenses (not room and board).  If it all was, then it wouldn't have been taxable. There are a lot of variables.   IF and this is the big IF...you hade a tax liability, then you may have penalties and interest for failure to pay and failure to file.  Click here for IRS penalty information.  <a rel="nofollow" target="_blank" href="https://www.irs.gov/faqs/irs-procedures/collection-procedural-questions/collection-procedural-questi...>