My Employer provides a scholarship of $2000 per semester to my child in college. That amount is added into my pay as a taxable benefit. How do I handle it when it comes to entering it into my education expenses?

[nikihoi1]

When I list the scholarship it reduces my deduction but I've been taxed on it already.

[DDollar · Accepted solution]

You should not enter that as a scholarship.  It is being included in your income, so it is taxable income, not a student scholarship.