Q. Any suggestions?
A. Yes. Use 1. Include as "other scholarship, not shown in 1098-T".
It's usually entered at the 1098-T, educational expenses section (see below for how). But, I see you are using the download software. There's an alternate way to enter.
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Less Common Income
-Click "Visit All".
- On the next screen, click yes
You'll eventually reach a screen to enter the scholarship amount.
Include as "other earned income", 1040, item 1h, is not wrong. Entering as scholarship is just more right.
Include as "other income", Schedule 1, item 8z. Not totally wrong, but the last choice. Usually not a good idea. See:
8z vs 8r https://ttlc.intuit.com/community/college-education/discussion/re-grad-student-stipend-and-fellowshi...
Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).After answering no to having a 1098-T*, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1 (this line is new for 2022-3).
*If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.
