I had tuition for a total of $5500.00. I received grants for $4500 ($3900 for Pell grant), however I also took out student loans. Why is Turbotax putting that as income?

[NCperson]

did you post the 1098-T form?

the loans have nothing to do with it. 

if Box 5 PLUS the grants exceed Box 1, then it is taxable..... but not clear from what you state whether that is true in this situation.

also, can you be claimed as a dependent on someone else'f taxes (e.g. parents); if yes and Box 1 is more than Box 5, then need to post the 1098-T....not you

[aaronkallstrom]

1098 T Box 1 is the $5500, the grants box is 4500.00. For some reason it's lowering my federal tax return by $1000 when I enter it as if it's income.

[NCperson]

I guess I am not following the words you are using...so please answer each question below so maybe we can get on the same page, 

1) are you a dependent of anyone else - yes or no

2) if Box 1 is $5500 and Box 5 is $4500, that should be lowering any tax due (and in fact may not have any bearing at all),  but certainly not raising the tax due.  Is that your question? 

3) what do you mean by "lowering my federal tax return" - does that mean the tax is lower, the income is lower, something else is lower; the expression is too vague for me to understand what you are referring to; sorry. 

4) what makes you think the loans you took out have anything to do with this equation?