How do I answer "was any of you fin aid already included in income?" I receive money both as a for my position as a graduate research assistant and tuition for classes.

[galgal]

I am a graduate student that has receives money for her GRA position. I also receive money for tuition and health insurance. Is the scholarship the same as my wages? Should I say, yes I has=d scholarship or other id reported on my W-2 if the wages are from my GRA position

[KrisD15]

The TurboTax program is asking because it does not want you to report twice the financial aid you received into the TurboTax program. 

If the aid is reported on your W2 or 1098-T, don't enter that amount a second time. 

Financial aid NOT USED for tuition and/or other education expenses would be reported as income and could increase the tax you need to pay. 

[SAmd_Prince]

How do we know that

"If the aid is reported on your W2 or 1098-T, don't enter that amount a second time. "?

[MonikaK1 · Accepted solution]

Box 5 of Form 1098-T shows the amount of scholarships and grants that were paid directly to the school for the student's expenses. Scholarships and grants may reduce the amount of qualified expenses the student can use when calculating a credit.

If the financial aid is more than the tuition expense, the excess needs to be reported as income. TurboTax will report the excess on the wages line of your tax return. However, you can also choose to report more of it as income and less as aid received, and possibly qualify for education credits. You just don't want to report the same amount twice as both wages and as financial aid.

See this TurboTax tips article for more information about Form 1098-T.

See also these IRS instructions regarding Form 1098-T.

[SAmd_Prince]

Thank you so much for the reply.  The amount in box 5 is less than in box 1 on my 1098-T. Should I say No to this question?

[MonikaK1]

Yes, you can reply No the the question "was any of your financial aid already included in income", assuming that the financial assistance was not separately reported as income, such as on a Form W-2 as wages.

[SAmd_Prince]

How can we check that " that the financial assistance was not separately reported as income, such as on a Form W-2 as wages."?

[KrisD15]

The program is asking  if your employer paid for part of your tuition? 

If yes, did he include it in your wages or pay up to 5,250 as a tax-free benefit? 

Were any of the amounts listed on your 1098-T also listed somewhere else?