Do I have to document my financial aid/scholarships on my tax return if I am not eligible to receive a 1098-T form?

[abmmelrose]

My financial aid/scholarships have completely waived my college tuition. Therefore, I do not receive a 1098-T form. When filling out my taxes, do I document my financial aid/scholarships? Or when filling out my taxes, what do I do about the section regarding grants and scholarships?

[AnthonyC · Accepted solution]

Yes, you should enter your tuition and related expenses and record your scholarships/grants as its possible you could still qualify for a credit based off book expenses and it's possible you could have scholarship income that is taxable.

In the Form 1098-T Education section, after you indicate that your school does not have to send you a Form 1098-T, the program will still ask a series of follow-up questions.  You can enter your total amount of tuition and fees, then your books and related course materials expenses, and then be sure to indicate you have scholarships and grants and enter those amounts.  

The end result should be that you will only be eligible for a credit for any expenses over your scholarship amount, but if you have additional scholarships that were used for non-qualifying educational expenses (such as room and board), then you may have taxable income.

Now, you don't need to document your expenses on your actual return (i.e. you don't need to provide any receipts or proof), you just need to enter the amounts.