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New Member
posted Apr 17, 2022 10:26:32 AM

Do I have to report all scholarship and grants

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6 Replies
Level 15
Apr 17, 2022 10:38:44 AM

Only the ones that are taxable.  Since they're all potentially taxable, they should all be entered unless you know for sure they are not.

 

If taxable scholarship is your only income and it is less than $12,550 (the federal filing requirement), you do not need to file a tax return. 

 

Scholarships that paid for non qualified expenses are taxable. Tuition, fees, books and computers are qualified expenses.  If box 5 of your 1098-T is more than box 1, TurboTax will automatically treat the difference as taxable scholarship income unless you tell it differently.

 

Why are you asking?

Expert Alumni
Apr 17, 2022 10:39:33 AM

Yes, if you received any tax forms, reporting your scholarships and grants you will have to report them on your tax return,

New Member
Apr 17, 2022 11:47:56 AM

sorry I didn’t really elaborate. So I got pell grant as well as California promise grant and I saw that they combined both on my tax form but the promise grant automatically goes towards my tuition. The pell grant is money deposited into my account. I was curious if I have to change anything since the promise grant is technically part of my tuition paid?

Expert Alumni
Apr 18, 2022 5:00:37 PM

If the combined amount of the grants that is reported in Box 5 of the 1098 is more than the educational expenses reported in Box 1, it's taxable income, no matter how the grants are distributed. You can reduce the scholarship/grant amount by certain expenses to reduce your taxable income from the grants. Turbo Tax will address that in the program as you navigate through your educational expenses interview in Turbo Tax.

 

You don't have to change anything in the program other than adjust the taxable amount of the grants by certain expenses, such as room and board. This is only if your grants/scholarships reported in Box 5 0f the 1098 exceed your educational expenses for the year.

 

@enriquezpaulinna
 

 


 

New Member
Apr 18, 2022 5:56:34 PM

OP mentioned that the Pell Grant goes into his account while other Scholarships are directly put towards tuition. I received a Financial Award including scholarships and grants, but did not attend that school for that semester. Where does this money go since I did not register for the school?

 

Level 15
Apr 18, 2022 6:05:40 PM

You want to get scholarship on line 1 of form 1040, with the notation SCH, so that it will classified as earned income for some purposes.

 

So, you need to enter it in the education expenses - scholarship section, even if you didn't get a 1098-T.  You'll have to go thru a bunch of screens but you'll eventually reach a screen to enter scholarship money.