I got a scholarship from my college. my college sent me a letter that its taxable on the federal level and not by the state. how do I file that on TurboTax?

[ayw234-gmail-com]

I am in BMG (in Lakewood NJ), the scholarship is a Kollel check. if needed i can send a picture of the letter I got from BMG.

[DawnC · Accepted solution]

Go through the Education 1098-T section.  It will ask you to enter your 1098-T and other education expenses you had.  Then it will ask you about your scholarships and grants.   TurboTax will calculate what is taxable and transfer the taxable amounts to your tax return.     The Education questions are in the Deductions and Credits section.   Use the search bar and search for education.  Then use the Jump to education link in the search results to be taken to the area where you should enter your scholarship information.   

In New Jersey (page 21)- - This type of income is taxable unless the scholarship or grant meets all of the following conditions: 

1. The primary purpose of the grant is to further the recipient’s education or training; and 

2. The grant does not represent payments for past, present, or future services that are subject to the direction or supervision of the grantor (e.g., a fellowship given in exchange for teaching); and 

3. The grant is not for the benefit of the grantor.

These amounts are not taxed on the federal return and TurboTax will not tax them on the state return either.   Room and board expenses are taxable on the federal and NJ state returns.   Enter all of your expenses on the federal portion and the information will transfer over to NJ.  

Edit to add NJ info.   [02/06/23 |11:22 AM  PST]  @ayw234-gmail-com