<a rel="nofollow" target="_blank" href="
https://www.irs.gov/taxtopics/tc421">https://www.irs.gov/taxtopics/tc421</a> They should put in scholarship section, claim any amount that's not for qualified education expenses in the subsequent room & board question about the grant. Not SE income although reporting using 1099 screen may get it to work, it definitely works when posting via education interview section. It's also subject to kiddie tax. Taxable scholarships and grants can be both earned income and subject to kiddie tax at the same time. So a tax return must be filed on students under 24 return if over $1,050. Amount becomes taxable, with no other income, if over $6,350, as the standard deduction will reduce it to $0, but still a return must be filed. (I did not test via 1099 entry if it falls in kiddie tax as it should if under 24 student, it will if entered via education interview, education interview makes all education in the correct place).
Publication 970 says when it's in excess how to report it. <a rel="nofollow" target="_blank" href="
https://www.irs.gov/publications/p970#en_US_2017_publink1000255742">https://www.irs.gov/publications...>
Worksheet 1-1. Taxable Scholarship and Fellowship Grant Income
1. Enter the total amount of any scholarship or fellowship grant for 2017. See Amount of scholarship or fellowship grant, earlier. 1.
If you are a degree candidate at an eligible educational institution, go to line 2.
If you aren't a degree candidate at an eligible educational institution, stop here. The entire amount is taxable. For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowship Grants , later.
2. Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. Don't include amounts received for these items under the National Health Service Corps Scholarship Program, the Armed Forces Health Professions Scholarship and Financial Assistance Program, or a comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college (as defined in that section). 2.
3. Subtract line 2 from line 1 3.
4. Enter the amount from line 3 that your scholarship or fellowship grant required you to use for other than qualified education expenses 4.
5. Subtract line 4 from line 3 5.
6. Enter the amount of your qualified education expenses 6.
7. Enter the smaller of line 5 or line 6. This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship grant) 7.
8. Subtract line 7 from line 5 8.
9. Taxable part. Add lines 2, 4, and 8. See Reporting Scholarships and Fellowship Grants , later, for how to report this amount on your tax return
How you report any taxable scholarship or fellowship grant income depends on which return you file.
Form 1040EZ. If you file Form 1040EZ, include the taxable amount in the total on line 1. If the taxable amount was not reported on Form W-2, also enter "SCH" and the taxable amount in the space to the left of line 1.
Form 1040A. If you file Form 1040A, include the taxable amount in the total on line 7. If the taxable amount was not reported on Form W-2, also enter "SCH" and the taxable amount in the space to the left of line 7.
Form 1040. If you file Form 1040, include the taxable amount in the total on line 7. If the taxable amount was not reported on Form W-2, also enter "SCH" and the taxable amount on the dotted line next to line 7.
Form 1040NR. If you file Form 1040NR, report the taxable amount on line 12. Generally, you must report the amount shown on Form(s) 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, box 2. See the Instructions for Form 1040NR for more information.
Form 1040NR-EZ. If you file Form 1040NR-EZ, report the taxable amount on line 5. Generally, you must report the amount shown on Form(s) 1042-S, box 2. See the Instructions for Form 1040NR-EZ for more information.
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
