How do I calculate the SCH value on line 1

SCH refers to taxable scholarship.  In a nutshell, it is the amount of scholarship and grants that exceed your qualifying education expenses, or the amount of scholarships and grants that you have elected to make taxable to claim a credit such as the American Opportunity credit.

To calculate:

1. First, subtract the qualified education expenses you claimed from the scholarship you received.  If you are claiming additional scholarship as taxable, include that amount also.
2. Next, subtract all wages reported in box 1 of all your Forms W2 from the Wages reported in Box 1 of Form 1040.
3. Step 1 should equal Step 2, and would be the amount included as SCH on line 1 of your 1040.

What if I calculated taxable scholarship into total wages.  But forgot to write SCH and scholarship amount on dotted line?

@mellieball Here's how to enter Taxable Scholarship Income:

 

• Log in to your TurboTax Online account, or open your TurboTax CD/Download program
• Choose Take me to my return
• Click on Federal Taxes
• Click on Wages & Income
• Locate Less Common Income and click Show more
• Locate and click to Start next to Miscellaneous Income, 1099-A, 1099-C
• Answer Yes to Did you receive any other wages?
• On the following screen you will locate Other reportable income and click Start
• Then you will enter SCH in the description box and the amount
• Click Done

 

Click this link for more info on Taxable Scholarships.