Can I claim a portion of scholarship as room and board on my return in order to increase the opportunity credit? If so, how do I claim the income on my child's return?

[HelpMe3]

While filling out my return using Turbotax I've discovered if I claim a portion of my son's scholarship was used for room in board the amount of the American Opportunity credit I receive is increased.  When doing so, Turbotax informs me that the room and board amount will have to be claimed on my son's taxes.  My son has earned enough income requiring he file, so I'd like to know how to properly report the room and board amount as income on his taxes, since the r&b amount is not specifically reported on his 1098-T or any other form.

[KrisD · Accepted solution]

Let your son know what amount he must include as income, this should be available from the information given to you when you did your tax return. 

To report Scholarship income as taxable income

Sign into your account and start your return

Click Federal on the left side-bar

Click Wages & Income on the top

Scroll down to Less Common Income and click Show more

Scroll down to Miscellaneous Income, 1099-A, 1099-C and click Start

Scroll down to Other reportable income and click Start

“Any Other Taxable Income?” screen click Yes

“Other Taxable Income” screen type   Scholarship   into the Description box

Enter the amount into the Amount box and click Continue