The Scholarship income would be treated as EARNED income. Follow these steps:
- Open to federal Deductions & Credits
- Locate EDUCATION
- Select Expenses and Scholarships
- Tell the program you don't have a 1098-T, that you have an exception, don't enter any expenses, enter the excess scholarship on the screen that asks if you received a scholarship you have not yet reported.
If you had tax withheld:
- under deductions and credits
- other income taxes, start/ edit
- locate other income taxes paid in 2024
- select withholding not already entered on a w2 or 1099
If your income is exempt under a treaty, see Resident Alien Claiming a Treaty Exemption for a Scholarship or Fellowship:
Subtract the income
- Open to federal income
- Locate Miscellaneous Income, 1099-A, 1099-C, Start
- Scroll to the bottom
- Other reportable income, Start
- Other taxable income?
- Select YES
- Description exempt under Treaty US -XX article ???
- Amount, enter your negative amount, use a minus sign in front.
- Continue
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